The Nevada System of Higher Education (NSHE) has designated a nonresident alien tax specialist for each institution. The nonresident alien tax specialist approves all payments to foreign companies/entities in compliance with IRS tax withholding and reporting.

Vendor/Payment Registration

All foreign entities/companies must register in the Supplier Registration System.

Vendors must complete their registration and one of the W-8 forms listed below based on their entity or structure. The nonresident alien tax specialist must review all vendor registrations and approve them once all information and documentation is completed correctly. Contact the Supplier Registration Team if you are having difficulty registering.

Types of W-8 Forms

Tax Withholding and Reporting Information

Withholding Rates

When making payments to foreign corporations, the facts and circumstances must be analyzed to determine the appropriate withholding certificate to request, and which withholding rates or exemptions to apply. Income must be identified as foreign-sourced or U.S.-sourced income, determined whether or not it is effectively connected with the conduct of a U.S. trade or business, whether or not the corporation is actually a personal holding company, and whether or not a tax treaty applies. In order to arrive at the correct conclusions, it is imperative that you correctly classify the income and identify the true beneficial owner of the income.

  • For payment of foreign goods only, IRS section 1441 does not apply, and there is no tax withholding or reporting.
  • For services performed abroad (foreign-sourced income), IRS section 1441 does not apply, and there is no tax withholding or reporting.

Exception: U. S. citizens performing services abroad are taxed on their worldwide income.

Payments for software or copyright use (unless UNLV owns exclusive rights) is considered a royalty. Royalty income is taxed where it is used (U.S.) and is subject to 30% tax withholding unless a valid W-8 form is received and a tax treaty applies.

Any time you deal with payments, some of which are foreign sources and some of which are U.S. sources, it is important that the payee identifies the payment by source on an invoice. If they do not identify the payment by source, and you know that some of the payment is U.S. source, you must withhold tax on all of the payment(s).

Special tax and reporting issues occur when making payments to a U.S. agent on behalf of a foreign person (entity). These situations arise with performers/artists/athletes. The beneficial owner of the income is the foreign person, not the agent. The payment is subject to 30% tax withholding and reporting unless a valid W-8 form is received from the foreign person (entity) and the foreign person(s) must have a Central Withholding Agreement (CWA) with the IRS.

IRS Tax Treaties

Foreign entities can claim an IRS tax treaty that can reduce or eliminate tax withholding. A U.S. Employer Identification Number (EIN) or Foreign Taxpayer Identification Number (TIN) is required to claim a tax treaty. The nonresident alien tax specialist determines eligibility. 

Tax Reporting

U.S.-sourced payments are subject to reporting on Form 1042-S. Our office mails 1042-S forms in February.