International Tax Gap Series Most types of U.S. source income paid to a foreign person are subject to a withholding tax of 30%, although a reduced rate or exemption may apply if stipulated in the applicable tax treaty. For more details on the rules for proper withholding and information reporting of U.S. source income paid to foreign persons, refer to NRA Withholding. References and Links: Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities Return to: The International Tax Gap Series
