Honoraria is typically a one-time gratuitous payment made as a gesture of goodwill in appreciation to speakers or participants in special Stanford events (short-term events) by submitting an Easy Pay Honoraria transaction. See How To Create Honoraria Using Stanford Easy Pay for instructions. While completing the request for Honoraria, if the recipient of the funds is foreign, the preparer must capture the type of Visa used for this travel in the WHO: portion of the Business Purpose to identify if the foreign traveler is eligible to receive honoraria payment.
Claim Tax Treaty for Honorarium
Before You Start
Important: Standard processing of honoraria payments is through Stanford Easy Pay. All tax and tax treaty document processing is handled by our vendor partner, Candex. Candex will contact the payee to request appropriate documentation needed to fulfill the payment.
This How To should only be used for two purposes:
- To assist payees with preparing an IRS 8233 form to be submitted to Candex.
- If an approval to use the Easy Pay exception process has been obtained through the Financial Support Center. (In these instances, all tax documentation and banking information is processed by Stanford when the payee is set up in Oracle.)
Basic Eligibility
To claim the tax treaty, the foreign visitor must have a U.S. issued Social Security Number or Individual Taxpayer ID Number (ITIN). If the foreign visitor does not have this ITIN, there is no benefit to completing the form. If the foreign visitor is requested to complete the IRS 8233 form to return to Candex or Stanford, please follow these instructions.
- To be eligible to claim a tax treaty for honorarium, the applicant must be:
- A nonresident alien
- A resident of one of the Countries with Treaty Benefits for Scholarship or Fellowship Grants immediately preceding their arrival in the U.S
In the U.S. on a B-1, WB or J-1 visa
For a description of visitor categories and allowable visa types, refer to Topic Overview: Inviting and Paying Foreign Visitors.
- For a list of tax treaties by country of residence and requirements for maximum presence in U.S. and maximum amount of compensation, refer to Resource: Tax Treaty Table for Independent Personal Services Performed in the United States.
- Open 8233 Form
- Download and/or print form You may refer to Instructions for Form 8233.
- Enter the applicable calendar year when compensation is expected
- Enter responses in Numbers 1-4 of the 8233 form. Enter your permanent address in your country of residence on line 4.
- Enter information in Numbers 5-9 of the 8233 form from the information on your I-94 form Enter the date of the first arrival in the U.S. for this current trip (exclude tourist visits) on line 8.
Complete the following fields on Part II of the Form:
- 11a - Provide a description of the type of service being provided
- 11b - Enter an estimate of the total compensation expected to receive in this calendar year for this honorarium
- 12a - Enter the tax treaty you are basing the exemption from withholding (e.g., U.S.-Canada tax treaty), and enter your eligible country of residence
- 12b - Enter the tax treaty article on which you are basing the exemption from withholding (e.g., Article 7).
- The article number can be found in the Resource: Tax Treaty Table for Independent Personal Services Performed in the United States.
- 12c - Enter the amount of compensation that is exempt from withholding. This amount can be the same as the amount entered for 11b.
- 12d - Enter your country of residence. This should be the same country as Part I, line 4.
- 14 - Provide details of services provided in 11a making sure to give enough detail to allow the IRS to determine the tax treaty benefit being claimed and that requirements have been met
- Read the Certification in Part III
- Sign and date the form
Submit tax related forms to Candex as requested
OR
(Only required if processing Easy Pay exception)
Submit the completed 8233 to Payment Services through Stanford Easy Pay as a Non-PO Payment using the secure Supplier and Payee Request Portal
For exception processing, confidential and banking information for payees must be submitted via the secure Supplier and Payee Request Portal, not uploaded as back-up documentation to a Non-Purchase Order (PO) Payment Request transaction.If you have not received an email to be able to access the Supplier and Payee Request Portal, please submit a Support Request to the Financial Support Center.
In addition to the completed 8233, foreign visitors, or their authorized agent, may be required to submit copies of the visa, passport, I-94 and other requested documents.