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Start with the person or recipient being tested

For a non-U.S.-citizen individual, IRS guidance generally uses green-card or substantial-presence tests, with elections, exceptions and treaty questions. That is not the same as company formation or the ultimate-owner nationality relevant to an immigration treaty.

For a payment, identify the actual company recipient and income. Company treaty residence, beneficial ownership and applicable limitation-on-benefits (LOB) conditions need their own facts; an owner’s personal residence does not establish them.

Sources: Internal Revenue Service: Noncitizen green-card/substantial-presence tests; exceptions/treaty; dual status Department of Homeland Security: (e)(2), (3), (7), (12), (16) U.S. Department of the Treasury: Articles4,12,23; read with19July 2002 protocol U.S. Department of the Treasury: Complete protocol; Article IV replaces Article 23(7)(d)

The UK treaty is an illustration, not a universal shortcut

Article 4 of the U.S.–UK treaty distinguishes individuals from other persons. For an individual treated as resident in both countries, earlier conditions—permanent home, closer personal/economic relationships and habitual abode—precede nationality in the described sequence. The person’s outcome cannot simply be copied onto the company.

A fictional owner living in the UK with another country’s citizenship and a company receiving U.S. royalties therefore has several questions, not one UK label. Establish the relevant person/entity and period under the actual law and treaty amendments. Keep identity and tax documents with their authorised private custodian.

Sources: U.S. Department of the Treasury: Articles4,12,23; read with19July 2002 protocol U.S. Department of the Treasury: Complete protocol; Article IV replaces Article 23(7)(d)

Scope

  • No day count, exception, residence result, treaty rate, payment entitlement or immigration approval is determined. The UK illustration does not define other treaties.

Next step

Identify the actual payment recipient and period before applying a personal-residence or nationality assumption to the company.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

Determining an individual’s tax residency status

Internal Revenue Service

Passage, dates and research notes

official-guidance · Noncitizen green-card/substantial-presence tests; exceptions/treaty; dual status

green card test or the substantial presence test

Accessed: 2026-11-13T00:52:28.765952+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Read complete main page. Individual U.S. tax status, not company residence. No day-count calculation, closer-connection qualification, treaty tiebreak result or immigration status conclusion. Page last reviewed/updated11 February 2026 is not a new law date.

U.S.–UK income tax convention signed 24 July 2001

U.S. Department of the Treasury

Passage, dates and research notes

primary · Articles4,12,23; read with19July 2002 protocol

Limitation on Benefits

Accessed: 2026-11-13T00:55:05.389620+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Read complete Articles4,12,23 and cross-check protocolArticle IV amendment to Article 23(7)(d). Guide gives no numeric royalty rate or eligibility conclusion and does not transpose a UK test to other treaties. Treaty residence, beneficial ownership, royalty character, permanent-establishment/special-relationship/conduit conditions and LOB are distinct.

Protocol amending U.S.–UK convention, signed 19July 2002

U.S. Department of the Treasury

Passage, dates and research notes

primary · Complete protocol; Article IV replaces Article 23(7)(d)

Sub-paragraph d) of paragraph 7 of Article 23

Accessed: 2026-11-13T00:55:05.390773+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Read complete protocol. Article IV replaces the equivalent-beneficiary definition; do not rely on the unamended 2001 wording. Signature is not represented as entry-into-force. No post-Brexit equivalence/derivative-benefit conclusion is made.

8 CFR §214.2(e): treaty traders and investors

Department of Homeland Security

Passage, dates and research notes

primary · (e)(2), (3), (7), (12), (16)

individuals who are ultimately its owners

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

FAM page inaccessible during review, so guide does not decide country-specific consular treatment or escrow sufficiency.

Detailed rule records (1)
Keep owner nationality, personal tax residence and company residence separate Depends on the facts

IRS individual-residence guidance distinguishes noncitizen green-card/substantial-presence tests and exceptions; treaty residence uses its own text. Immigration treaty nationality is a separate inquiry, and entity residence is not the owner’s personal tax status.

When to check: Keep owner nationality, personal tax residence and company residence separate. Source review: 2026-11-12.

Determining an individual’s tax residency status U.S.–UK income tax convention signed 24 July 2001 Protocol amending U.S.–UK convention, signed 19July 2002 8 CFR §214.2(e): treaty traders and investors
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