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A guide Step 6 Tax Treaty

🔎 What is a Tax Treaty?

👉 A tax treaty is a formal agreement established between two countries with the primary purpose of preventing the same income from being taxed twice. This type of treaty ensures that individuals or businesses earning income in both countries are not subjected to double taxation, which can occur when both countries claim the right to tax the same income. 

ℹ️️ Depending on your situation, you may qualify to claim treaty benefits on all or part of your scholarship/grant. If eligible, the applicable treaty will be shown in the “Tax Treaties” section.

✔️ Tax Treaty available

📌 If you're eligible to use the Tax Treaty make sure to select “Yes” to question “Do you want to use this tax treaty exemption”.

 

❌ Tax Treaty not available

📌 If your country of residence does not have a tax treaty agreement with the US you will see the following message:

 

📌 There is treaty agreement between the US and your country of residence, but you either do not cover the conditions to use it or the treaty agreement does not cover scholarship/grant income.

 


 

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