Policies & Compliance

Other Conduct of Research Issues

11.2 International Issues

Sponsored projects that involve foreign nationals, international collaborators, or non-U.S. sponsors present additional regulatory, contractual, tax, and compliance considerations. The University is committed to complying with all sponsor requirements and applicable U.S. laws governing international engagement.

Investigators must consult the Office of Sponsored Projects (OSP) early when a project includes international components, including foreign consultants, collaborators, subrecipients, or sponsors.

Employment and Payment of Foreign Nationals

University policy requires compliance with all sponsor-specific eligibility rules and federal requirements governing the employment of and payment for services provided by foreign nationals.

Investigators should be aware that:

Some sponsors restrict which individuals may be paid from sponsored funds based on citizenship or immigration status;
Certain awards require letters of commitment from international consultants at the proposal stage; and
Projects funded by agencies such as the Public Health Service (PHS) or the Department of Defense (DoD) may impose heightened restrictions related to citizenship, immigration status, export-controlled activities, or access to sensitive information.

Any project that anticipates paying or collaborating with foreign nationals should be reviewed with OSP prior to proposal submission or award acceptance.

Immigration, Tax, and Employment Considerations

U.S. immigration laws, Internal Revenue Service (IRS) regulations, and Treasury rules impose requirements and limitations on the length, nature, and compensation of foreign-national employment or consulting relationships.

Depending on the individual's status, these considerations may include:

Visa eligibility and work authorization;
Income tax withholding and reporting;
Tax-treaty benefits; and
Institutional employment requirements.

Investigators must coordinate with:

OSP for restricted party screening and sponsor and contractual review;
Human Resources and the International Center, for employment eligibility and visa issues; and
The Tax Services Office for guidance on tax treatment and required IRS forms.

11.2.1 International Tax Issues

When non-resident aliens are engaged under sponsored projects, a range of federal tax issues may arise, including:

visa-based employment limitations;
U.S. income-tax withholding obligations; and
applicability of tax treaties between the U.S. and the individual's country of residence.

The Tax Services Office should be consulted for assistance with tax compliance and completion of required IRS documentation for non-resident aliens.

11.2.2 International Contracting

When a sponsor is based outside the United States, or when a sponsored project involves international subrecipients or collaborators, OSP must negotiate and execute all required agreements on behalf of the University.

International agreements often raise additional legal and financial complexities, including - but not limited to - the following:

Currency and Exchange-Rate Risk

The University prefers that sponsored agreements be funded and paid in U.S> dollars whenever possible. When foreign currency is involved, exchange-rate fluctuations can affect the actual value of funds available. Departments are responsible for covering any project over-expenditures caused by currency exchange losses.

Refer to Foreign Currency guidance in the Procedure Library.

Payment Methods

Banking and payment practices vary by country. International payment methods - such as wire transfers - may involve additional fees or delays that should be considered during budget development.

Choice of Law and Dispute Resolution

As an instrumentality of the State of Utah, the University cannot agree to be governed by foreign law. International contracts should avoid provisions requiring foreign governing law or arbitration whenever possible. Each agreement must be reviewed on a case-by-case basis by OSP and other University offices, as appropriate.

Contract Terminology

International agreements may include legal terms that appear routine but carry significant implications under foreign law. Whenever possible, University-approved contract templates should be used, and all agreements require OSP review.

Intellectual Property Considerations

International collaborations may affect the protection of patents and intellectual property, as patent laws and filing requirements vary by country. Investigators should consult the Technology Licensing Office early when IP may arise from international projects.

Foreign Corrupt Practices Act (FCPA)

The U.S. Foreign Corrupt Practices Act (FCPA) prohibits offering anything of value to foreign government officials or agents to influence business outcomes. Investigators should be aware of FCPA requirements when engaging in international activities. Questions or concerns should be referred promptly to the Office of General Counsel.

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