Foreign Crew Tax Overview

Foreign nationals working aboard a vessel in US waters are subject to US taxation. The employer must report the wages paid and the individual must file an annual income tax return. See our Compensation Reporting page for how to meet these payroll filing obligations. Our Employer Filings page explains what forms the employer needs to submit. Taxes withheld by the employer are covered on the Crew Payroll Taxes page. The Crewmember Tax Return page covers the annual federal income tax return.

The word Crewmember in this discussion covers all personnel aboard the vessel including both project and marine crew. We typically see these individuals hold a B-1 OCS, B-1 with Wind Endorsement and/or C1/D visa. Someone working onshore may also hold an L-1 visa which necessitates a different taxpayer number application process.

The vessels and employers are all assumed to be foreign in this discussion. This information does not apply to US vessels and other US employers.

This discussion is limited to federal tax implications. States, territories, possessions and similar tax jurisdictions are not covered.

This discussion does not cover any corporate tax matters including whether or not an employee’s costs are considered to be charged to a US permanent establishment under a tax treaty. Your corporate tax department will need to make this determination.

This discussion also does not cover any matters relating to international transportation (whether or not a transportation treaty exists) or commercial fisheries.