O. Nonresident alien (non-U.S. resident) employees entitled to tax treaty benefits
In accordance with IRS guidelines, a non-U.S. resident employee (referred to in federal and state law as aliens and noncitizens ) who claims an exemption from tax under a provision of a federal income tax treaty must file federal Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual , with the employer to claim a tax treaty exemption from withholding.
A non-U.S. resident employee who claims exemption from tax in accordance with IRS guidelines is not required to provide any additional documentation to claim exemption from New York State, New York City, and Yonkers income taxes. An employer may accept Form 8233 submitted under federal guidelines. The employer is not required to submit federal Form 8233 to New York State but should maintain a copy of the statement submitted with the employee’s records available for review by the Tax Department. For more information on non-U.S. residents and federal tax treaties, see federal Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities , Publication 519, U.S. Tax Guide for Aliens , and the instructions for federal Form 8233.