NYU Financial Operations and Treasury (FO&T) can assist travelers, program administrators, and departmental personnel by providing information on the most efficient and cost effective access to funds in a foreign country while traveling on business. An individual traveling to or from the U.S. with cash (including traveler’s checks) in excess of $10,000 must declare the amount to U.S. Customs. Many other countries restrict the amount of cash that an individual may bring in or out of the country. Information about other countries’ currency restrictions may be found on the U.S. State Department website.
Opening a Foreign Bank Account
Contact FO&T to discuss the possibility of opening a bank account abroad. Opening a bank account in a foreign country can take as long as 12 months until the bank account is operational.
- Under NYU’s Bank and Securities Account Policy, FO&T will oversee the opening of a bank account, which must be in NYU or an NYU affiliates' name and must be approve of changes to the account, including signatories and banking authority. Finally, in order to open a bank account in a foreign country, NYU may to register in that country, which can have tax, employment and other repercussions.
Please contact Global Support at firstname.lastname@example.org with any questions.
Completing a Foreign Bank Account Report (FBAR)
Taxpayers with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during a year generally must file a Report of Foreign Bank and Financial Accounts (FBAR Report). FO&T will assist NYU faculty and staff on NYU bank accounts.
Making International Payments
Making international payments can create a number of issues, both legal and practical. To wire payments abroad, please consult FO&T’s Foreign Wires Guide, which provides country-specific information required when submitting a non-US wire transfer payment request. This guide will help to ensure information provided on a wire transfer payment request is complete and accurate, thus facilitating the timely disbursement of funds. Any international payments will also have to comply with anti-bribery and US sanctions and export control restrictions as described in the “International Regulatory Issues” section of this website.
Foreign exchange rates can affect your project budget and payment obligations. The volatility of currency movements can be dramatic and may be heavily influenced by economic, country specific and political factors. FO&T generally recommends paying for items in the local currency. Any agreement should specify the currency in which payment should be made and, if necessary, how an exchange rate will be calculated if the currency is very volatile. NYU has Foreign Exchange Risk Management Guidelines and tracks the University’s foreign exchange exposures. FO&T can assist with questions on foreign exchange issues.
NYU’s Procurement Department may be able to assist with overseas purchases. Additional information is available on the Buying & Paying page here.
The University’s mail services can provide assistance with international shipping. The University has a designated international customs broker that can provide customs clearance and/or expedited services coming into and going outside of the United States.
The NYU Purchasing Card, commonly referred to as a “P-Card,” is a tool offered to NYU employees who are responsible for procuring goods and services for their department. The P-Card is available to certain NYU or affiliate employees. View the Payment Cards page for more information or email email@example.com for assistance with a P-Card.
Although NYU is tax-exempt in the U.S., it doesn’t automatically receive this exemption from foreign countries. NYU may be taxed in the foreign jurisdiction or may have withholding obligations. These taxes may include income taxes on an independent contractor’s payment, value added taxes (VAT) on services or goods and corporate taxes on income made in the country. In many instances, it may be necessary to ask a partner institution to be responsible for the payment to local authorities of any local taxes that may be incurred as a result of the foreign activity. Please email firstname.lastname@example.org with any questions.
Income generated in a foreign country may result in tax obligations in that country. Individuals should consult their personal accountant to make sure any personal tax obligation has been considered before earning income in a foreign jurisdiction. In some cases, OGS and FO&T may be able to advise, please consult the OGS Self Service Tax Website.
Possible Withholding Obligations
All payments made by the University to or on behalf of an individual or entity must be reviewed to determine the U.S. tax residency status of the payee or beneficiary of the payment.
The Foreign Account Tax Compliance Act was enacted to prevent offshore tax evasion by US persons through the use of foreign payees. FATCA seeks to obtain information about US account holders in foreign financial institutions and US owners of foreign entities. All payments to nonresident payees who perform services in the United States must be entered into our Glacier nonresident alien software. Tax treaty benefits are evaluated and appropriate documentation is requested through this system. Each payment requires the review of certain key factors, including the (i) payee’s U.S. tax residency status, (ii) payee’s immigration status, and (iii) category of income paid. If the payee does not perform any activities in the U.S. related to the payment, tax withholding and reporting may not be required.
- Please consult NYU’s Non-alien Tax Resources for further information. All issues regarding the taxation of payments made to potential and/or determined nonresident aliens is managed by the Nonresident Alien Tax Specialists in the University’s Tax Department.