Generally, a foreign national is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign national person are subject to U.S. tax of 30%. However, many additional facts are needed to further determine if a tax exemption applies or a reduced withholding rate may apply. The Tax Compliance Office can help departments make this determination.
Additionally, a N.C. withholding tax may apply as well to any persons who do not reside in N.C. and are doing business in N.C. This withholding rate is 4% and is withheld on payments of more than $1,500.00.
UNCW is responsible for making this determination and withholding all applicable taxes from payments.