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Foreign recipients of U.S. income, 2000.

Data Release

United States-source income payments to "foreign persons" totaled $139.7 billion in 2000. This represents a decrease of 12 percent from 1999 levels, following a 27-percent increase from 1998 to 1999. A precipitous decrease in the income paid to Japanese recipients accounted for more than half of the decline. Tax withheld on U.S.-source income payments fell 38.4 percent, to $2.3 billion, while the effective U.S. tax rate on payments made to foreign recipients (U.S. tax withheld divided by total U.S.-source income) fell from 2.3 percent to 1.6 percent for Tax Year 2000. Meanwhile, the total number of payments reported on Forms 1042S rose to an all-time high of 2.53 million.

The United Kingdom surpassed Japan as the recipient of the most U.S.-source income, accounting for nearly $24 billion, despite a decline of $1.7 billion from 1999. Japanese recipients collected the second-largest share of U.S.-source income with $19.2 billion, a decrease of 35.8 percent from 1999. Interest payments remained the most significant category of U.S.-source income by far. Nearly 88 percent ($122.3 billion) of all income paid to foreign persons came from interest payments, an increase of 18.5 percentage points. Dividends, second among income categories, fell from $25.7 billion in 1999 to $12.5 billion in 2000. Corporations remained the most significant entity in terms of total U.S.-source income received and tax withheld, accounting for 65.1 percent and 58.4 percent, respectively.

Background

U.S.-source income of nonresident alien individuals and other foreign persons is reported on Form 1042S, Foreign Persons' U.S.-Source Income Subject to Withholding. This income is subject to a flat, statutory tax rate of 30 percent. However, this rate is frequently reduced or eliminated by way of an income tax treaty or statutory exemption (see Table 1 for the amount of income exempt from taxation). Income that is exempt from taxation because of a tax treaty is still required to be reported. The principal types of income are interest (other than that from bank deposits), dividends, rents, royalties, Social Security and railroad retirement payments, and personal services income, shown separately in Table 2. Other types of income include capital gains, scholarships, pensions and annuities, and certain real estate distributions. Certain types of income that are "effectively connected" with a U.S. trade or business, as well as bank deposit interest, are not subject to the withholding tax and are generally not reported on Form 1042S. The tax liability on effectively connected income is reported on other forms (see Explanation of Selected Terms).

U.S. individuals or businesses distributing U.S.-source income to foreign persons are required to withhold taxes on this income (except where statutory or treaty exemptions apply), or to appoint a withholding agent (normally a financial institution) to do so. A payer or designated agent is fully liable for all taxes owed by a recipient and also reports the income paid to each recipient on a Form 1042S. Without this withholding requirement, there would be no effective way to enforce taxpayer compliance because foreign recipients are generally not required to file U.S. tax returns to report this income.

During 2000, the United States had tax treaties in force with 61 of its trading partners (Table 1) [1]. For 2000, persons in treaty countries received 68.1 percent of total U.S.-source income payments to foreign persons, while accounting for 68.3 percent of the total U.S. tax withheld on these payments. There were ten non-treaty countries which received over $1 billion of U.S.-source income in 2000: Argentina, the Bahamas, Bermuda, the British Virgin Islands, the Cayman Islands, Hong Kong, Jersey, Netherlands Antilles, Singapore, and Taiwan (Table 2).

Data Highlights

More than $139.7 billion in U. S.-source income payments were made to foreign persons in 2000. Although this represents a decrease of 12 percent from the all-time high in 1999, it is the second-highest amount ever paid in a single year. The total number of Forms 1042S filed for 2000 reached 2.53 million, a slight increase from 1999 (2.40 million). The average income payment and the average U.S. tax withheld per payment, not including tax withheld by foreign governments and foreign withholding agents (see Data Sources and Limitations), were $55,157 and $893, respectively.

Of the $139.7 billion of total U.S.-source income reported on Forms 1042S, 91.6 percent was exempt from taxation, as compared to 80.9 percent in 1999. This increase caused the effective withholding rate (tax withheld as a percentage of total U.S.-source income paid) to dip from 2.3 percent to 1.6 percent. The effective withholding rate on the $11.8 billion of income subject to withholding tax was 19.2 percent; substantially less than the 30-percent statutory rate. Because of tax treaties and statutory exemptions, only $3.2 billion of the $11.8 billion of income subject to taxation were taxed at the statutory rate. This represents just 2.3 percent of the total U.S.-source income paid to foreign persons.

In 2000, interest payments reported on Form 1042S, which excludes bank deposit interest, increased 11.6 percent to $122.3 billion. Interest accounted for 87.6 percent of total U.S.-source income paid to foreign persons. Dividends, the second largest type of payment, fell 51.3 percent, to $12.5 billion. Dividends comprised almost 9 percent of total U.S.-source income.

Foreign corporations received 65.1 percent of all U.S.-source income paid to foreign persons in 2000, while accounting for 58.4 percent of the U.S. tax withheld. U.S.-source income paid to corporations totaled $90.9 billion, a decrease of $20.9 billion from 1999. Tax withheld on corporations is low in relation to the income they receive because such a large proportion of their income is comprised of interest that is exempt from taxation. In 2000, about 92.2 percent ($83.8 billion) of income paid to corporations was exempt from taxation. Interest comprised 98.2 percent of the tax-exempt income paid to corporations, while accounting for 90.9 percent of the total income distributed to corporations.

U.S.-source income paid to foreign individuals totaled $5.9 billion, or approximately the same level as in 1999. Compared to corporations, individuals have a higher percentage of tax withheld relative to total income. Individual recipients accounted for 4.2 percent of the U.S.-source income paid in 2000, while paying 16.8 percent of the total taxes. Additionally, individuals received 33.6 percent of their incomes in the form of Social Security benefits, railroad retirement benefits, and dividends, three of the income types that are taxed at the highest effective rate and generally receive limited treaty benefits.

Residents of the United Kingdom received 17 percent of all U.S.-source income paid in 2000, as shown in Figure A. The nine countries included in Figure A account for 65 percent of all U.S.-source income paid to foreign persons, although their share of the total has fallen over the years. Figure B shows that all of these countries except for the tax havens, the Cayman Islands and Bermuda, received less income in 2000 than in 1999. Gross income paid to residents of Japan saw the biggest decrease (in dollars), falling $10.7 billion from 1999 to 2000. Other countries, not specifically listed in Figure B, received 4 percent more income in 2000 than in 1999.

Data Sources and Limitations

Payers (or their authorized withholding agents) of most U.S.-source income to foreign persons must withhold tax in accordance with the Internal Revenue Code. Form 1042S, Foreign Persons' U.S.-Source Income Subject to Withholding, is filed by the payer to report this income and the U.S. tax withheld. Often, a financial institution acts as the payer's withholding agent. The statistics in this data release were tabulated by calendar year, using all Forms 1042S filed with the Internal Revenue Service for 2000. The data reflect the income that was paid and U.S. tax that was withheld for 2000, except for U.S. tax withheld by foreign governmental organizations and their withholding agents. In a few countries, under treaty provisions, foreign governmental organizations (or other authorized entities) withhold tax for income paid to foreign nominees and fiduciaries if the ultimate recipient is unknown or is not a resident of a treaty country. The purpose of such tax withholding is to prevent persons in nontreaty countries from reaping treaty benefits by indirectly channeling their income through a treaty country. When the ultimate recipient is not entitled to the treaty benefits, the foreign governmental organization (or withholding agent) remits the tax withheld back to the United States. This additional tax, therefore, is not generally attributable to specific income years. For this reason, the statistics in this data release generally do not include tax withheld by foreign governments and foreign withholding agents (except for Canada, which remits its tax payments during the same calendar year in which the U.S. income is paid). These amounts, however, are shown in column 7 of Table 1 for Tax Year 2000.

Because all Forms 1042S were used for the statistics, the data are not subject to sampling error. However, the data are subject to nonsampling error, such as computer data entry error and taxpayer reporting error. Although the data were subjected to tests, the data for certain basic numerical relationships, including the calculation of the correct tax withheld, the possibility of error was not completely eliminated. However, as a further check, Forms 1042S with income amounts greater than $3 million were manually verified.

Explanation of Selected Terms

Foreign Persons.--For purposes of this data release, foreign persons include: (a) individuals whose residence is not within the United States and who are not U.S. citizens (i.e., nonresident aliens); and (b) corporations and other organizations (including partnerships, private foundations, estates, and trusts) created or organized outside the United States. Also, individuals re siding, and organizations created or organized, in Puerto Rico and U.S. possessions are considered foreign persons.

Income Effectively Connected with a U.S. Trade or Business.--Income that is "effectively connected" with a U.S. trade or business is exempt from the withholding tax requirements. Most of this income is taxed at the ordinary graduated U.S. rates, in the same manner as any other income paid to U.S. citizens and residents. Foreign corporations must report such income on Form 1120F, US. Tax Return of a Foreign Corporation, and individuals must report such income on Form 1040NR, US. Nonresident Alien Income Tax Return [2]. Effectively connected real estate distributions are reported on Form 8288A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests. Effectively connected income may be erroneously reported on Forms 1042S, but the extent of its inclusion in the statistics, while unknown, is believed to be insignificant.

Notes and References

[1] U.S. Department of the Treasury, Internal Revenue Service, U.S. Tax Treaties, Publication 901. The U.S. income tax treaty with the former Union of Soviet Socialist Republics (U.S.S.R.) remains in effect for the following members of the Commonwealth of Independent States (C.I.S.): Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. That treaty will remain in effect until new treaties with these individual countries are negotiated and ratified. New treaties with Russia and Kazakhstan entered into force in 1994 and 1996, respectively.

[2] For information on Forms 1120F, see Statistics of Income, Corporation Income Tax Returns, Publication 16, published annually. The Statistics of Income program does not produce data from Forms 1040NR.
Table 1.--Forms 1042S: Number, Total U.S.-Source Income, and U.S. Tax
Withheld, Tax Treaty Countries and Total Non-Tax Treaty Countries,
2000

[Money amounts are in thousands of dollars]

 U.S. source income
 Number
 of forms Exempt from
 Country or geographic area 1042S Total withholding

 (1) (2) (3)

Total 2,532,052 139,660,703 127,889,238
Treaty countries, total 1,977,573 95,060,578 85,746,745
 Armenia 892 7,765 6,916
 Australia (2) 47,480 3,876,041 3,566,407
 Austria 22,766 698,342 491,017
 Azerbaijan 470 2,714 2,466
 Barbados 2,223 459,956 439,223
 Belarus 543 2,752 2,311
 Belgium 24,055 1,157,455 1,047,638
 Canada 468,941 6,974,836 5,907,676
 China 96,336 1,157,402 1,126,642
 Cyprus 2,362 13,023 10,427
 Czech Republic 3,252 51,924 50,773
 Denmark 6,679 436,062 328,157
 Egypt 7,105 75,769 71,563
 Estonia 417 3,932 3,588
 Finland 3,496 169,789 159,977
 France (3) 45,943 4,938,791 4,494,027
 Georgia 624 4,090 3,674
 Germany 278,409 5,635,766 5,213,368
 Greece 19,288 114,602 66,217
 Hungary 2,843 37,340 34,144
 Iceland 2,362 6,697 3,795
 India 30,617 144,817 122,916
 Indonesia 8,753 31,211 25,920
 Ireland 33,085 2,652,962 2,408,895
 Israel 21,614 351,730 330,611
 Italy 47,293 2,178,655 1,952,409
 Jamaica 4,933 167,840 157,754
 Japan 118,892 19,198,773 17,492,199
 Kazakhstan 530 5,814 5,591
 Korea, Republic of (South) 23,665 617,101 606,398
 Kyrgyzstan 466 4,040 3,860
 Latvia 280 1,740 1,476
 Lithuania 588 2,831 2,170
 Luxembourg 5,691 4,366,856 3,572,237
 Mexico 112,281 1,234,810 961,374
 Moldova 273 1,608 1,438
 Morocco 1,868 4,805 3,133
 Netherlands 29,086 4,615,782 4,242,290
 New Zealand 11,852 112,735 71,262
 Norway 11,279 560,113 510,636
 Pakistan 6,446 16,079 12,635
 Philippines 28,605 252,554 187,261
 Poland 6,445 53,827 39,358
 Portugal 10,826 380,165 336,018
 Romania 3,547 18,632 17,624
 Russia 11,490 58,140 42,807
 Slovak Republic 898 20,406 19,938
 Spain 25,466 3,870,168 3,763,618
 Sweden 14,269 978,559 691,444
 Switzerland 48,159 3,007,631 2,309,609
 Tajikistan 160 666 573
 Thailand 8,628 33,208 28,610
 Trinidad and Tobago 4,200 19,429 14,253
 Tunisia 348 1,597 1,409
 Turkey 6,869 61,784 53,903
 Turkmenistan 211 10,064 9,939
 Ukraine 2,835 15,213 13,477
 United Kingdom 256,017 23,963,756 22,532,772
 Uzbekistan 427 2,449 2,123
 Venezuela 33,096 147,292 127,602
Nontreaty countries, total (4) 554,479 44,600,125 42,142,493

 U.S. source
 income U.S. tax witheld

 By domestic
 Country or geographic area Subject to witholding
 withholding Total agents (1)

 (4) (5) (6)

Total 11,771,465 2,353,310 2,260,107
Treaty countries, total 9,313,833 1,638,192 1,544,989
 Armenia 849 114 114
 Australia (2) 309,634 46,961 46,961
 Austria 207,325 32,130 31,404
 Azerbaijan 247 31 31
 Barbados 20,732 3,298 3,298
 Belarus 440 82 82
 Belgium 109,617 22,663 17,187
 Canada 1,067,160 161,795 161,795
 China 30,760 4,797 4,747
 Cyprus 2,597 484 484
 Czech Republic 1,151 229 229
 Denmark 107,905 16,702 16,702
 Egypt 4,206 747 747
 Estonia 344 53 53
 Finland 9,811 1,907 1,907
 France (3) 444,764 65,442 64,152
 Georgia 415 44 44
 Germany 422,398 56,844 56,844
 Greece 48,386 12,538 12,538
 Hungary 3,196 562 562
 Iceland 2,902 488 488
 India 21,901 3,929 3,929
 Indonesia 5,291 850 850
 Ireland 244,066 56,728 56,728
 Israel 21,119 5,078 5,078
 Italy 226,446 34,500 34,500
 Jamaica 10,087 2,250 2,250
 Japan 1,706,574 246,995 246,995
 Kazakhstan 223 37 37
 Korea, Republic of (South) 10,703 2,163 2,163
 Kyrgyzstan 180 31 31
 Latvia 264 28 28
 Lithuania 661 126 126
 Luxembourg 794,619 210,259 198,682
 Mexico 273,435 61,580 61,580
 Moldova 171 30 30
 Morocco 1,672 275 275
 Netherlands 373,492 53,366 52,704
 New Zealand 41,472 6,227 6,227
 Norway 49,477 9,279 9,279
 Pakistan 3,244 821 621
 Philippines 65,293 17,229 17,229
 Poland 14,469 3,592 3,592
 Portugal 44,147 9,433 9,433
 Romania 1,009 138 138
 Russia 15,334 2,195 2,195
 Slovak Republic 467 79 79
 Spain 106,550 21,396 21,396
 Sweden 287,115 45,580 45,580
 Switzerland 698,022 179,711 107,574
 Tajikistan 95 14 14
 Thailand 4,398 866 866
 Trinidad and Tobago 5,177 1,385 1,385
 Tunisia 188 36 36
 Turkey 7,881 1,507 1,507
 Turkmenistan 125 26 26
 Ukraine 1,735 237 237
 United Kingdom 1,430,964 223,901 222,565
 Uzbekistan 327 48 48
 Venezuela 19,691 3,630 3,630
Nontreaty countries, total (4) 2,457,632 715,118 715,116

 U.S. tax withheld

 By foreign
 governments and
 withholding
 Country or geographic area agents

 (7)

Total 93,203
Treaty countries, total 93,203
 Armenia --
 Australia (2) --
 Austria 726
 Azerbaijan --
 Barbados --
 Belarus --
 Belgium 5,476
 Canada --
 China --
 Cyprus --
 Czech Republic --
 Denmark --
 Egypt --
 Estonia --
 Finland --
 France (3) 1,290
 Georgia --
 Germany --
 Greece --
 Hungary --
 Iceland --
 India --
 Indonesia --
 Ireland --
 Israel --
 Italy --
 Jamaica --
 Japan --
 Kazakhstan --
 Korea, Republic of (South) --
 Kyrgyzstan --
 Latvia --
 Lithuania --
 Luxembourg 11,577
 Mexico --
 Moldova --
 Morocco --
 Netherlands 662
 New Zealand --
 Norway --
 Pakistan --
 Philippines --
 Poland --
 Portugal --
 Romania --
 Russia --
 Slovak Republic --
 Spain --
 Sweden --
 Switzerland 72,137
 Tajikistan --
 Thailand --
 Trinidad and Tobago --
 Tunisia --
 Turkey --
 Turkmenistan --
 Ukraine --
 United Kingdom 1,336
 Uzbekistan --
 Venezuela --
Nontreaty countries, total (4) --

(1) Canada remits to the United States tax payments during the same
calendar year in which the U.S. income is paid. Therefore, these
payments are included in column 6 rather than column 7. For other
countries, tax payments remitted to the United States are generally
not attributable to specific income years.

(2) Includes Christmas Island.

(3) Includes Guadeloupe/French Guiana/Martinique/Reunion.

(4) Includes Puerto Rico and U.S. possessions. The U.S. and Bermuda
have had a tax treaty in effect since 1986, however, this treaty
provides no reduction of withholding rates.

NOTE: Detail may not add to totals because of rounding.

Table 2.--Forms 1042S: Number, U.S. Tax Withheld, and U.S.--Source
Income, by Principal Type of Income, Selected Recipient Type, and
Selected Country of Recipient, 2000

[Money amounts are in thousands of dollars]

 Selected country or geographic Number of U.S. tax
area and selected recipient type Forms 1042S withheld (1)

 (1) (2)

All countries, total 2,532,052 2,260,107
 Individuals, total 2,154,505 380,301
 Corporations, total 167,839 1,320,828
 Partnerships, total 4,572 43,258
 Fiduciaries, total 32,662 147,467
 Nominees, total 3,020 75,062
 Governments and
 international
 organizations, total 878 1,573
 Tax-exempt
 organizations, total (2) 5,323 48,026
 Private foundations, total 494 1,837
 Artists and athletes, total 1,437 4,238
 Other, total 76,181 108,809
 Unknown, total 85,141 128,707
Argentina 27,646 7,546
 Individuals 23,904 5,945
 Corporations 928 646
Australia 47,466 46,960
 Individuals 37,847 3,268
 Corporations 5,588 30,237
Austria 22,766 31,404
 Individuals 20,444 2,610
 Corporations 1,065 19,290
Bahamas 13,495 37,872
 Individuals 4,013 2,944
 Corporations 7,226 27,170
Bahrain 1,802 1,018
 Individuals 1,402 190
 Corporations 279 272
Barbados 2,223 3,298
 Individuals 1,540 624
 Corporations 434 661
Belgium 24,055 17,187
 Individuals 20,543 3,037
 Corporations 928 9,872
Bermuda 10,373 105,067
 Individuals 4,776 3,322
 Corporations 3,372 58,276
Brazil 21,838 6,337
 Individuals 19,710 5,120
 Corporations 666 631
British Virgin Islands 29,082 63,479
 Individuals 4,133 4,153
 Corporations 21,740 45,626
Canada 488,941 161,795
 Individuals 422,337 28,842
 Corporations 19,377 87,639
Cayman Islands 25,278 198,312
 Individuals 2,559 11,741
 Corporations 18,750 122,230
Chile 10,810 6,745
 Individuals 8,933 2,413
 Corporations 977 3,712
China 96,336 4,747
 Individuals 91,011 3,621
 Corporations 562 976
Colombia 19,717 4,299
 Individuals 17,277 3,491
 Corporations 943 609
Denmark 6,679 16,702
 Individuals 5,975 1,374
 Corporations 374 14,231
Finland 3,496 1,907
 Individuals 3,088 740
 Corporations 168 1,119
France 45,444 62,705
 Individuals 39,754 10,628
 Corporations 2,531 45,790
Germany 278,409 56,844
 Individuals 264,495 15,786
 Corporations 3,928 24,767
Greece 19,288 12,538
 Individuals 18,361 11,808
 Corporations 368 625
Guernsey 2,102 10,548
 Individuals 184 147
 Corporations 1,103 8,282
Hong Kong 36,806 28,024
 Individuals 29,990 7,980
 Corporations 3,439 8,811
India 30,617 3,929
 Individuals 29,306 3,615
 Corporations 122 49
Ireland 33,085 56,728
 Individuals 29,296 1,987
 Corporations 1,811 22,118
Israel 21,614 5,078
 Individuals 18,784 2,637
 Corporations 824 1,252
Italy 47,293 34,500
 Individuals 44,333 4,024
 Corporations 1,194 26,442
Jamaica 4,933 2,250
 Individuals 4,454 2,174
 Corporations 147 53
Japan 118,892 246,995
 Individuals 94,243 7,203
 Corporations 8,204 164,470
Jersey 3,549 41,663
 Individuals 504 445
 Corporations 1,881 30,815
Korea, Republic of (South) 23,665 2,163
 Individuals 23,002 2,050
 Corporations 252 52
Kuwait 3,863 4,115
 Individuals 3,270 418
 Corporations 268 1,777
Luxembourg 5,691 198,682
 Individuals 1,575 694
 Corporations 2,341 165,835
Mexico 112,281 61,580
 Individuals 106,615 57,238
 Corporations 1,816 1,429
Netherlands 29,086 52,704
 Individuals 24,236 5,222
 Corporations 1,815 34,900
Netherlands Antilles 4,902 22,316
 Individuals 2,152 1,307
 Corporations 1,927 13,614
New Zealand 11,852 6,227
 Individuals 10,005 1,026
 Corporations 602 3,426
Norway 11,279 9,279
 Individuals 10,520 4,631
 Corporations 356 4,213
Panama 13,197 13,562
 Individuals 4,740 1,979
 Corporations 7,120 9,039
Philippines 28,605 17,229
 Individuals 27,518 13,572
 Corporations 309 3,557
Portugal 10,826 9,433
 Individuals 10,290 7,954
 Corporations 223 583
Puerto Rico 14,777 2,407
 Individuals 10,349 182
 Corporations 905 390
Saudi Arabia 13,624 21,236
 Individuals 12,370 18,562
 Corporations 556 2,122
Singapore 29,993 9,679
 Individuals 26,544 2,557
 Corporations 1,124 3,877
Spain 25,466 21,396
 Individuals 23,186 7,771
 Corporations 1,249 11,373
Sweden 14,269 45,580
 Individuals 12,898 3,272
 Corporations 566 41,826
Switzerland 48,159 107,574
 Individuals 31,611 6,558
 Corporations 4,229 71,342
Taiwan 77,659 21,656
 Individuals 67,611 13,807
 Corporations 1,967 1,856
United Arab Emirates 5,359 1,441
 Individuals 4,642 662
 Corporations 243 655
United Kingdom 256,017 222,565
 Individuals 215,345 17,065
 Corporations 14,720 144,968
Venezuela 33,096 3,630
 Individuals 29,567 3,003
 Corporations 1,767 322

 Principal types of
 U.S.--source
 income
 Selected country or geographic Total U.S.--
area and selected recipient type source income Interest

 (3) (4)

All countries, total 139,660,703 122,308,933
 Individuals, total 5,864,833 1,927,225
 Corporations, total 90,880,424 82,594,811
 Partnerships, total 2,397,352 2,200,226
 Fiduciaries, total 4,086,461 3,002,316
 Nominees, total 4,740,302 4,315,608
 Governments and
 international
 organizations, total 7,786,742 6,645,478
 Tax-exempt
 organizations, total (2) 4,351,673 3,202,624
 Private foundations, total 103,330 62,951
 Artists and athletes, total 15,658 --
 Other, total 2,571,137 2,000,075
 Unknown, total 16,862,790 15,857,619
Argentina 1,251,862 1,213,234
 Individuals 88,276 56,684
 Corporations 1,154,237 1,150,069
Australia 3,876,038 3,500,940
 Individuals 40,892 7,725
 Corporations 3,531,369 3,327,611
Austria 698,342 472,918
 Individuals 25,748 6,038
 Corporations 488,074 347,490
Bahamas 1,560,639 1,381,978
 Individuals 68,381 55,310
 Corporations 1,215,893 1,081,729
Bahrain 179,851 173,460
 Individuals 1,359 379
 Corporations 126,800 125,046
Barbados 459,956 436,806
 Individuals 6,466 2,263
 Corporations 139,573 135,016
Belgium 1,157,455 1,036,818
 Individuals 31,531 4,650
 Corporations 866,075 797,256
Bermuda 4,720,273 4,329,432
 Individuals 44,091 28,138
 Corporations 2,362,807 2,140,065
Brazil 151,557 114,721
 Individuals 79,426 47,648
 Corporations 64,865 62,044
British Virgin Islands 1,841,726 1,596,792
 Individuals 108,610 93,195
 Corporations 1,221,995 1,039,261
Canada 6,974,836 5,167,983
 Individuals 666,955 196,490
 Corporations 4,240,320 3,612,452
Cayman Islands 16,971,215 16,221,436
 Individuals 167,163 127,147
 Corporations 8,793,196 8,328,643
Chile 364,656 308,233
 Individuals 37,368 24,894
 Corporations 178,206 136,544
China 1,157,402 728,906
 Individuals 443,325 17,429
 Corporations 431,677 430,593
Colombia 223,314 198,940
 Individuals 58,466 36,970
 Corporations 24,318 22,195
Denmark 436,062 320,682
 Individuals 9,126 307
 Corporations 382,700 287,091
Finland 169,789 157,744
 Individuals 5,743 315
 Corporations 110,710 104,564
France 4,937,798 4,218,084
 Individuals 126,642 17,170
 Corporations 4,441,775 3,934,517
Germany 5,635,766 4,794,362
 Individuals 356,057 51,389
 Corporations 4,586,028 4,242,098
Greece 114,602 54,867
 Individuals 61,791 4,940
 Corporations 46,461 44,115
Guernsey 406,825 370,517
 Individuals 1,188 656
 Corporations 335,732 307,486
Hong Kong 2,809,023 2,701,910
 Individuals 88,203 53,419
 Corporations 499,397 466,655
India 144,817 10,373
 Individuals 138,365 5,386
 Corporations 5,162 4,829
Ireland 2,652,962 2,354,625
 Individuals 140,854 108,569
 Corporations 1,841,675 1,724,662
Israel 351,730 297,083
 Individuals 83,812 41,556
 Corporations 175,571 168,638
Italy 2,178,855 1,819,885
 Individuals 160,732 14,737
 Corporations 1,592,857 1,422,377
Jamaica 167,840 151,826
 Individuals 16,810 1,377
 Corporations 150,514 150,104
Japan 19,198,773 17,297,195
 Individuals 277,337 152,421
 Corporations 13,387,482 12,136,273
Jersey 1,928,543 1,773,425
 Individuals 9,730 8,016
 Corporations 1,508,035 1,393,548
Korea, Republic of (South) 617,101 531,726
 Individuals 89,399 5,339
 Corporations 507,037 506,390
Kuwait 428,345 393,387
 Individuals 4,365 2,132
 Corporations 156,323 150,842
Luxembourg 4,366,856 3,568,615
 Individuals 7,979 3,925
 Corporations 3,867,899 3,253,013
Mexico 1,234,810 936,411
 Individuals 485,267 221,492
 Corporations 155,109 146,202
Netherlands 4,615,782 3,453,862
 Individuals 56,913 9,839
 Corporations 1,933,293 1,460,454
Netherlands Antilles 3,636,686 3,558,744
 Individuals 25,552 18,504
 Corporations 3,347,413 3,299,563
New Zealand 112,735 62,249
 Individuals 12,115 1,662
 Corporations 45,170 20,988
Norway 560,113 463,701
 Individuals 24,263 388
 Corporations 227,995 199,842
Panama 240,906 183,773
 Individuals 40,199 30,637
 Corporations 173,771 135,937
Philippines 252,554 192,004
 Individuals 65,372 6,105
 Corporations 50,224 49,546
Portugal 380,165 333,734
 Individuals 36,530 1,591
 Corporations 30,093 28,087
Puerto Rico 380,193 375,956
 Individuals 1,106 260
 Corporations 174,181 172,523
Saudi Arabia 701,910 612,307
 Individuals 77,749 11,622
 Corporations 148,672 141,694
Singapore 2,350,828 2,088,934
 Individuals 33,352 18,227
 Corporations 533,337 516,564
Spain 3,870,168 3,731,593
 Individuals 78,303 11,940
 Corporations 3,598,809 3,542,497
Sweden 978,559 671,860
 Individuals 25,791 4,368
 Corporations 922,167 647,695
Switzerland 3,007,631 2,174,186
 Individuals 79,997 24,141
 Corporations 2,093,215 1,535,500
Taiwan 1,471,049 1,340,976
 Individuals 127,052 52,703
 Corporations 614,432 609,103
United Arab Emirates 830,443 737,605
 Individuals 52,514 49,435
 Corporations 489,104 474,159
United Kingdom 23,963,756 21,743,102
 Individuals 382,923 97,291
 Corporations 16,600,317 15,456,084
Venezuela 147,292 113,438
 Individuals 83,471 53,694
 Corporations 55,536 53,109

 Principal types of U.S.--source
 income

 Social
 Security
 Rents and rail-
 and road
 Selected country or geographic royal- retirement
area and selected recipient type Dividends ties payments

 (5) (6) (7)

All countries, total 12,523,760 594,831 1,094,466
 Individuals, total 870,267 70,422 1,094,466
 Corporations, total 7,135,155 372,397 --
 Partnerships, total 178,973 12,380 --
 Fiduciaries, total 996,776 329 --
 Nominees, total 416,845 1 --
 Governments and
 international
 organizations, total 622,297 282 --
 Tax-exempt
 organizations, total (2) 1,146,004 80 --
 Private foundations, total 40,062 38 --
 Artists and athletes, total -- -- --
 Other, total 519,941 671 --
 Unknown, total 597,441 138,233 --
Argentina 15,622 670 7,500
 Individuals 9,807 56 7,500
 Corporations 4,052 70 --
Australia 341,663 9,876 54
 Individuals 11,811 3,076 54
 Corporations 196,643 4,750 --
Austria 202,500 3,967 5,535
 Individuals 6,199 2,647 5,535
 Corporations 133,475 224 --
Bahamas 129,086 145 748
 Individuals 9,527 10 748
 Corporations 91,726 113 --
Bahrain 4,996 2 3
 Individuals 609 -- 3
 Corporations 998 1 --
Barbados 19,418 357 1,597
 Individuals 1,226 (3) 1,597
 Corporations 3,981 313 --
Belgium 99,328 4,612 3,796
 Individuals 12,878 2,328 3,796
 Corporations 62,573 2,054 --
Bermuda 347,673 646 809
 Individuals 13,464 64 809
 Corporations 202,894 535 --
Brazil 12,323 1,289 4,654
 Individuals 9,337 333 4,654
 Corporations 1,712 157 --
British Virgin Islands 213,850 455 400
 Individuals 14,485 -- 400
 Corporations 154,805 455 --
Canada 1,306,615 55,101 234,877
 Individuals 70,000 8,716 234,877
 Corporations 567,466 32,249 --
Cayman Islands 712,062 444 363
 Individuals 39,275 3 363
 Corporations 432,390 424 --
Chile 19,501 86 2,682
 Individuals 4,827 15 2,682
 Corporations 12,590 3 --
China 15,769 423 367
 Individuals 13,903 118 367
 Corporations 742 299 --
Colombia 7,031 470 5,680
 Individuals 5,420 65 5,680
 Corporations 1,140 213 --
Denmark 102,836 959 3,802
 Individuals 1,232 135 3,802
 Corporations 94,632 368 --
Finland 6,701 175 2,010
 Individuals 790 66 2,010
 Corporations 5,592 21 --
France 507,654 73,786 20,897
 Individuals 29,140 1,586 20,897
 Corporations 394,173 66,278 --
Germany 432,849 30,941 67,184
 Individuals 103,971 14,918 67,184
 Corporations 212,979 10,706 --
Greece 7,915 70 38,671
 Individuals 5,342 53 38,671
 Corporations 2,211 5 --
Guernsey 34,705 (3) --
 Individuals 492 -- --
 Corporations 27,201 (3) --
Hong Kong 90,904 182 2,301
 Individuals 22,377 40 2,301
 Corporations 29,615 92 --
India 5,627 333 1,323
 Individuals 4,622 130 1,323
 Corporations 74 170 --
Ireland 261,081 15,809 13,776
 Individuals 12,234 496 13,776
 Corporations 109,360 6,082 --
Israel 21,079 1,015 6,251
 Individuals 10,675 297 6,251
 Corporations 5,560 536 --
Italy 217,878 7,151 97,059
 Individuals 14,579 460 97,059
 Corporations 167,092 1,068 --
Jamaica 1,493 233 7,066
 Individuals 1,106 155 7,066
 Corporations 294 70 --
Japan 1,565,120 8,295 27,224
 Individuals 18,856 4,464 27,224
 Corporations 1,049,235 3,391 --
Jersey 151,700 -- --
 Individuals 1,688 -- --
 Corporations 112,180 -- --
Korea, Republic of (South) 3,689 125 655
 Individuals 3,217 52 655
 Corporations 325 35 --
Kuwait 33,437 7 --
 Individuals 1,275 7 --
 Corporations 5,152 -- --
Luxembourg 772,474 15,267 196
 Individuals 3,202 4 196
 Corporations 592,045 15,263 --
Mexico 50,857 9,533 188,484
 Individuals 28,850 863 186,484
 Corporations 6,522 1,359 --
Netherlands 974,223 86,884 11,197
 Individuals 14,650 436 11,197
 Corporations 329,197 80,199 --
Netherlands Antilles 70,227 3,090 --
 Individuals 4,367 (3) --
 Corporations 46,519 -- --
New Zealand 37,358 1,654 703
 Individuals 3,441 594 703
 Corporations 22,236 974 --
Norway 73,651 696 16,427
 Individuals 1,735 521 16,427
 Corporations 27,846 109 --
Panama 46,641 26 1,479
 Individuals 5,394 14 1,479
 Corporations 32,057 4 --
Philippines 4,879 60 44,640
 Individuals 3,921 22 44,640
 Corporations 572 28 --
Portugal 12,761 47 30,169
 Individuals 1,437 18 30,169
 Corporations 1,897 1 --
Puerto Rico 3,737 49 3
 Individuals 500 44 3
 Corporations 1,510 5 --
Saudi Arabia 83,935 29 41
 Individuals 60,676 28 41
 Corporations 6,830 (3) --
Singapore 252,295 413 76
 Individuals 6,988 26 76
 Corporations 13,711 310 --
Spain 77,497 5,152 22,566
 Individuals 23,254 773 22,566
 Corporations 42,835 1,074 --
Sweden 276,659 5,963 9,700
 Individuals 3,915 495 9,700
 Corporations 269,456 2,235 --
Switzerland 730,722 7,143 9,653
 Individuals 27,706 1,474 9,653
 Corporations 495,356 2,724 --
Taiwan 95,207 149 155
 Individuals 41,019 45 155
 Corporations 4,780 56 --
United Arab Emirates 91,524 137 --
 Individuals 2,085 1 --
 Corporations 14,671 136 --
United Kingdom 1,549,117 230,171 77,551
 Individuals 100,672 22,989 77,551
 Corporations 979,732 130,320 --
Venezuela 15,567 639 1,388
 Individuals 12,827 54 1,388
 Corporations 1,848 4 --

 Principal types of U.S.--source
 income

 Personal
 Selected country or geographic services income
area and selected recipient type

 (8)

All countries, total 463,789
 Individuals, total 463,077
 Corporations, total 704
 Partnerships, total 6
 Fiduciaries, total --
 Nominees, total --
 Governments and
 international
 organizations, total --
 Tax-exempt
 organizations, total (2) --
 Private foundations, total --
 Artists and athletes, total --
 Other, total 2
 Unknown, total (3)
Argentina 367
 Individuals 367
 Corporations --
Australia 2,219
 Individuals 2,218
 Corporations --
Austria 178
 Individuals 172
 Corporations --
Bahamas 5
 Individuals 5
 Corporations --
Bahrain --
 Individuals --
 Corporations --
Barbados 7
 Individuals 7
 Corporations --
Belgium 2,161
 Individuals 2,161
 Corporations --
Bermuda 7
 Individuals 7
 Corporations --
Brazil 810
 Individuals 810
 Corporations --
British Virgin Islands --
 Individuals --
 Corporations --
Canada 23,903
 Individuals 23,234
 Corporations 669
Cayman Islands --
 Individuals --
 Corporations --
Chile 63
 Individuals 63
 Corporations --
China 208,857
 Individuals 208,857
 Corporations --
Colombia 82
 Individuals 82
 Corporations --
Denmark 684
 Individuals 684
 Corporations --
Finland 57
 Individuals 57
 Corporations --
France 27,317
 Individuals 27,314
 Corporations 3
Germany 24,959
 Individuals 24,959
 Corporations --
Greece 2,312
 Individuals 2,312
 Corporations --
Guernsey --
 Individuals --
 Corporations --
Hong Kong 74
 Individuals 74
 Corporations --
India 19,893
 Individuals 19,869
 Corporations 24
Ireland 238
 Individuals 238
 Corporations --
Israel 9,679
 Individuals 9,679
 Corporations --
Italy 13,914
 Individuals 13,914
 Corporations --
Jamaica 323
 Individuals 323
 Corporations --
Japan 28,687
 Individuals 28,687
 Corporations --
Jersey --
 Individuals --
 Corporations --
Korea, Republic of (South) 25,616
 Individuals 25,616
 Corporations --
Kuwait (3)
 Individuals (3)
 Corporations --
Luxembourg 81
 Individuals 81
 Corporations --
Mexico 569
 Individuals 569
 Corporations --
Netherlands 3,687
 Individuals 3,687
 Corporations --
Netherlands Antilles 29
 Individuals 29
 Corporations --
New Zealand 383
 Individuals 376
 Corporations 7
Norway 1,412
 Individuals 1,412
 Corporations --
Panama 11
 Individuals 11
 Corporations --
Philippines 982
 Individuals 982
 Corporations --
Portugal 971
 Individuals 971
 Corporations --
Puerto Rico 5
 Individuals 5
 Corporations --
Saudi Arabia 3
 Individuals 3
 Corporations --
Singapore 225
 Individuals 225
 Corporations --
Spain 4,897
 Individuals 4,897
 Corporations --
Sweden 133
 Individuals 133
 Corporations --
Switzerland 1,367
 Individuals 1,367
 Corporations --
Taiwan 219
 Individuals 219
 Corporations --
United Arab Emirates 9
 Individuals 9
 Corporations --
United Kingdom 17,051
 Individuals 17,051
 Corporations --
Venezuela 664
 Individuals 664
 Corporations --

(1) Excludes small amounts of U.S. tax withheld by foreign governments
and withholding agents. See Table 1.

(2) Unrelated business income paid to foreign tax-exempt organizations
is subject to withholding tax.

(3) Indicates amount less than $500.

NOTES: Detail may not add to totals because of rounding. All countries
with total U.S.-source income over $100 million for tax year 2000 were
selected for this table.

FIGURE A

Percentage of Income Paid to Foreign Persons in Selected Countries, Tax
Year 2000

139.7 Billion

Other Countries 34.6%
United Kingdom 17.2%
Japan 13.7%
Cayman Islands 12.2%
Canada 5.0%
Germany 4.0%
France 3.5%
Bermuda 3.4%
Netherlands 3.3%
Luxembourg 3.1%

Figure B

Income Paid to Foreign Persons in Selected
Countries, Percentage Change 1999 to 2000

[Money amounts are in thousands of dollars]

 Percentage
 Income paid in change, 1999 to
Selected country 2000 2000

 All countries 139,660,703 -12.0
United Kingdom 23,963,756 -6.7
Japan 19,199,773 -35.8
Cayman Islands 16,971,215 85.0
Canada 6,974,836 -36.9
Germany 5,636,766 -47.9
France 4,937,798 -5.6
Bermuda 4,720,273 26.2
Netherlands 4,615,782 -43.6
Luxembourg 4,366,856 -11.2
Other countries 48,275,648 4.4


This data release was written by Scott Luttrell, an economist with the Special Studies Returns Analysis Section, under the direction of Chris Carson, Chief.
COPYRIGHT 2003 U.S. Government Printing Office
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

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Publication:Statistics of Income. SOI Bulletin
Article Type:Illustration
Geographic Code:00WOR
Date:Jun 22, 2003
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Previous Article:U.S. possessions corporation returns, 1997 and 1999.
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