An alien is a person who is neither an American national nor citizen. A non-resident alien is a person who has not qualified after taking the presence examination or the green card evaluation. The American government taxes non-resident aliens only on earnings from U.S. commerce sources. Consideration of income is effective based on commerce or trades within the U.S.A. And is ineffective based on income outside USA sources (Fellows, 2012). For non-resident aliens, taxing of their income is independent of efficiency of connection of the alien's income to U.S. trade or commerce sources. It is succinct that USA tax regime differs for resident and nn-resident aliens.

Income that is properly linked to a USA commerce or trade is subject to a flat legislative tax of 30% on the total amount earned without a deduction executed for related expenses. Decreased tax rates exist depending on the type of income and...
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