The Tax Code DT, or Form DT, is an abbreviation for Double Taxation. If you are resident in one country and have income from another then you may be required to pay tax in both countries to comply with taxation laws – hence, 'double taxation'.

Claiming Treaty Exemption on the Tax Return Enter the amount as a negative number for which treaty benefits are claimed on Schedule 1 (1040), line 8z. Enter “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption.

Treaty relief must be claimed on the IRS Form 8833, Treaty-Based Return Position Disclosure, which is attached to the nonresident alien income tax return (Form 1040-NR).

Income tax treaties generally determine the amount of tax that a country can apply to a taxpayer's income, capital, estate, or wealth. 1 An income tax treaty is also called a Double Tax Agreement (DTA). 2 Some countries are seen as being tax havens.

Treaties are only applicable to Non-Resident Aliens for tax purposes. To claim a tax treaty exemption, you must submit IRS Form 8233 to your employer prior to starting your employment and at the beginning of each new tax year.

Generally, under these tax treaties, residents of foreign countries (including foreign students and scholars) are taxed at a reduced tax rate and can benefit from exemptions on many different types and items of income.

The United States has tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. taxes on certain items of income they receive from sources within the United States.