In general, scholarship or fellowship pay to a non-resident alien is subject to federal income tax withholding (14%). However, a non-resident alien who qualifies to claim a tax treaty can avoid withholding by properly filling the W-8BEN package.

Properly filling the W-8BEN package implies that all required information is included and accurate, that the addemdum and additional documentation is also submitted, and that there are no scratches or corrections of any kind in the documents including liquid paper (IRS regulations).

Please keep in mind that the W-8BEN package (form, addendum, and supporting documentation) MUST be submitted every calendar year. The W-8BEN package is only valid from January to December of the year it is submitted.