WVU-CO-22 Scholarships/Grants to Foreign Students Policy

West Virginia University Policy
Division of Administration and Finance
WVU-CO-22

SCHOLARSHIPS/GRANTS TO FOREIGN STUDENTS POLICY

PURPOSE

The purpose of this policy is to inform nonresident alien individuals who are awarded scholarship/fellowship income that they are subject to withholding on taxable portions of that income.

SCOPE

This policy applies to all nonresident alien individuals awarded scholarship/fellowship income at the University, including those on the regional campuses.

POLICY

Nonresident alien individuals awarded scholarship/fellowship income are subject to withholding, at a rate of 14% on the taxable portions (room and board, and other payments not tuition, fees or books). Where applicable, the 14% withholding rate can be reduced if formally requested by the student, through the operation of a tax treaty.

Based on the financial award information received each school term from the Financial Aid Office, the University will determine the applicable withholding requirements on taxable portions of Scholarship/Fellowship income awarded to nonresident alien individuals. The applicable tax will be withheld prior to disbursement of award to recipient.

PROCEDURE

Procedure development rests with the Controller’s Office – Tax Accounting.

RESPONSIBILITY FOR IMPLEMENTATION

The responsibility for implementation of this policy rests with the Controller’s Office – Tax Accounting. The Controller’s Office, at 293-4002 or P.O. Box 6001, is available to answer questions or provide additional information regarding this policy.

RESPONSIBILITY FOR INTERPRETATION

The responsibility for interpretation of this policy rests with the Controller, West Virginia University.

Effective Date: September 10, 1998
Approved By: Scott C. Kelley, Vice President