U.S. Residency Certificate (Form 6166)
Form 6166 is a letter printed on the U.S. Department of Treasury letterhead certifying that the individuals or entities listed are residents of the United States for purposes of the income tax laws of the United States. This form may be used to claim income tax treaty benefits and certain other tax benefits in foreign countries.
If your department is to receive research payments, licensing, or royalty income from foreign countries, you may be asked by the foreign payor for Rice's U.S. Residency Certificate. Please contact Tax@rice.edu to request a Form 6166 from the IRS. The Tax office will need to submit a completed Form 8802 Application for United States Residency Certification with payment of the user's fee to the IRS. Typically, it takes 4 - 6 weeks to receive a Form 6166 in the mail after submission.
Reporting of Foreign Bank and Financial Accounts (FBAR)
FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), is used to report a financial interest in or signature authority over a foreign account. The FBAR is an annual report due by April 15 following the calendar year reported, with an automatic extension to October 15 without the need to request an extension to file. The FBAR is electronically filed with the U.S. Department of the Treasury's BSA E-filing System and states that the person filing has a financial interest in, or signature authority over, financial accounts in a foreign country with an aggregate value exceeding $10,000 at any time during the calendar year.
Rice officers and/or employees with signature or other authority over but no financial interest in certain Rice's foreign financial accounts are subject to the FBAR filing requirements. The Tax office works with the Office of Treasury to identify and notify all individuals with signature or other authority over Rice's foreign accounts on an annual basis in early spring for the previous reporting year. The Tax office will file FBAR on behalf of these identified individuals upon their authorization via a completed and signed FinCEN Form 114a. Please note that the FBAR filed on behalf of those individuals only covers Rice’s foreign accounts; individuals who also have a financial interest in their own personal foreign financial accounts should continue to have an obligation to file an FBAR via the BSA E-Filing System on their own to report their personal accounts.
Foreign VAT/GST
- Value‐Added Tax (VAT)
- VAT is a type of indirect tax that applies to physical goods or services, common in European countries
- VAT refunds to non‐EU travelers: VAT refunds for goods sold to non‐EU tourists who bring them out of the EU in their personal luggage may be requested to EU retailers or specialized intermediaries, particularly in the following cases:
- Tourists whose permanent address or habitual residence is not in the EU
- EU nationals living outside the EU
- Goods and Services Tax (GST)
- GST is similar to VAT in that it is levied whenever value is added to the product throughout the supply chain
- GST is common in Canada, India, and other Asia‐Pacific countries
- Rice is not exempt from VAT or GST for the purchase of goods or services used in foreign countries
Donations to Other Charitable Organizations
Rice files annual tax return Form 990-T with the IRS to report its unrelated business taxable income (UBTI). When calculating UBTI, Rice may claim a tax deduction of charity donations that Rice made to other charitable organizations during the year.
For cash or property donations of $250 or more, the Rice department making the donation should request a written acknowledgment of the donation (gift receipt) from the donee charity. The gift receipt obtained from the donee charity must meet the following requirements:
- The amount of cash donated and a description, but not the value, of any property contributed;
- A statement of whether the charity provided any goods or services in consideration, in whole or in part, for the contribution from Rice; and
- A description and good-faith estimate of the value of any goods or services provided to Rice or, if such goods or services consist solely of intangible religious benefits, a statement to that effect.
Please send a copy of the gift receipt to Tax@rice.edu
Student Organizations
Rice has many student clubs and organizations. If your student organization is a separate tax-exempt organization (with its own IRS approval letter) not related to Rice or a Rice chapter of a national non-profit organization, you should apply for a separate Employer Identification Number (EIN) specifically for your own student organization from the IRS for your reporting purposes. Rice University's EIN and name should never be used or included in your organization’s filing with the IRS or in your local chapter's annual report provided to your national central organization. If your student organization is a Rice club and deemed as part of the University, then this separate EIN requirement doesn't apply to you, and all your club's activities and tax reporting are included at the University entity level.
Questions?
Contact Tax@rice.edu