Fixed Income

About Fixed Income:

Fixed or Determinable Annual or Periodic Income: for purposes of the 30% tax on a nonresident alien's U.S.-source income, a class of income not effectively connected with a U.S. trade or business. Fixed indicates that the income is paid in predetermined amounts. Determinable means that there is a basis for calculating the amount of income. Fixed or determinable annual or periodic income includes:

• interest.

• dividends.

• rent.

• salaries and other compensation.

• alimony.

• annuities.

Fixed or determinable annual or periodic income may be paid in installments or as a lump sum. It does not include gains from the sale of property in the United States, which are also subject to a 30% tax.

U.S. and other Developed Countries International Tax Meaning

Income which does not fluctuate over a period of time, such as interest on bonds and debentures, or dividends from preference shares as opposed to dividend income from ordinary shares.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.