universe2000
New Member
I have a question about tax exemption.
I went to a US Lab A in Oct. 25, 2007 as a J1 research Scholar visa holder without any dependants, and came back to China in Oct. 26th,2009 when the program terminated. (I transfered to Lab B in Apr. 28th,2008 and stayed until Oct. 26th,2009. For these two years I have maintained my J1 status). I started to pay security and medical tax in Jan. 1st,2009 and was still exempt from federal and IL state tax.
I am planning to come to Lab B again with a J1 short-term scholar in July 12th, 2010 and stay for 6 months. Am I exempt for the federal and state tax for the entire duration of the coming visit or partially?
Thanks a lot!
/***************************explantion from web site, but it didn't mention whether one day will burn the whole year***********************/
The Technical Explanation3 to Article 19 of the Treaty states:This article provides that a resident of a Contracting State who goes to the other Contracting State for the primary purpose of teaching, lecturing, or conducting research at an accredited educational institution or scientific research institution in that other State will be exempt from tax in that other State on the remuneration for such activities for a period of up to three
years in the aggregate. Thus, for example, a resident of China who visits the United States to conduct research at the National Institute of Health(NIH) for two years, 1986 and 1987, returns to China for a year, and then
comes back for another year of research at NIH in 1989 would be exempt from tax on his NIH remuneration for each of the three years. However, if he stayed at NIH in 1990 or returned at a later time the exemption ould no longer be available. The exemption provided in this article is not available if the research is not undertaken in the public interest, but for the private gain of a specific person or persons.
This article is excepted from the "saving clause" of paragraph 2 of the Protocol, so its benefits are available to persons who otherwise qualify even if they become U.S. residents.
I went to a US Lab A in Oct. 25, 2007 as a J1 research Scholar visa holder without any dependants, and came back to China in Oct. 26th,2009 when the program terminated. (I transfered to Lab B in Apr. 28th,2008 and stayed until Oct. 26th,2009. For these two years I have maintained my J1 status). I started to pay security and medical tax in Jan. 1st,2009 and was still exempt from federal and IL state tax.
I am planning to come to Lab B again with a J1 short-term scholar in July 12th, 2010 and stay for 6 months. Am I exempt for the federal and state tax for the entire duration of the coming visit or partially?
Thanks a lot!
/***************************explantion from web site, but it didn't mention whether one day will burn the whole year***********************/
The Technical Explanation3 to Article 19 of the Treaty states:This article provides that a resident of a Contracting State who goes to the other Contracting State for the primary purpose of teaching, lecturing, or conducting research at an accredited educational institution or scientific research institution in that other State will be exempt from tax in that other State on the remuneration for such activities for a period of up to three
years in the aggregate. Thus, for example, a resident of China who visits the United States to conduct research at the National Institute of Health(NIH) for two years, 1986 and 1987, returns to China for a year, and then
comes back for another year of research at NIH in 1989 would be exempt from tax on his NIH remuneration for each of the three years. However, if he stayed at NIH in 1990 or returned at a later time the exemption ould no longer be available. The exemption provided in this article is not available if the research is not undertaken in the public interest, but for the private gain of a specific person or persons.
This article is excepted from the "saving clause" of paragraph 2 of the Protocol, so its benefits are available to persons who otherwise qualify even if they become U.S. residents.
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