A non-resident alien ( i.e. not a U.S. person) living in and a citizen of Greece will soon draw a pension from an American company based on his work in the U.S a number of years ago. The treaty between the US and Greece provides that there is no US tax due on any income under $10,000 a year. Since the pension will be under $10,000, presumably there is no tax due. If that is true, then there should be no withholding from his pension check. Ordinarily, I would say use a W4P to exclude have any deduction for income tax. However, based on my search of the U.S Treasury/IRS web site, it appears that this person should use form W-8BEN and use lines 9 and 10 "to claim a 0% rate of withholding". Do I have that correct?
- posted
16 years ago