A statement that you are relying on an exception to the saving clause of the tax treaty under which you are claiming the tax treaty exemption. Mr. Yu, a citizen of the People's Republic of China, entered the United States as a nonresident alien student on January 1, 1996. He remained a nonresident alien through 2000 and was able to exclude his scholarship from U.S. tax in those years under Article 20 of the U.S.-China income tax treaty. Even though Mr. Yu is now a resident alien, the provisions of Article 20 still apply because of the exception to the saving clause in paragraph 2 of the Protocol to the U.S.-China treaty dated April 30, 1984. If the payor of the scholarship intends to withhold U.S. income tax, Mr. Yu should submit Form W-9 and the required attachment to the payor.
Most treaties provide for the exemption of gains from the sale or exchange of personal property.
Generally, gains from the sale or exchange of real property located in the United States are taxable.