A person who is not a U.S. citizen, is not a lawful permanent resident (the green card test), or is unable to pass the substantial presence test developed by the Internal Revenue Service. The substantial presence test requires a presence of less than 183 days during the most recent three years to be classified as a nonresident alien. Compare resident alien.
non-U.S. citizen who lives outside of the U.S. but who has taxable business
activities in the U.S. A nonresident alien is subjected to a withholding tax of
30 percent on dividend payments unless the alien’s country has a tax treaty
with his or her native country. A nonresident alien is subjected to higher
income tax withholding in other financial areas as well.