In fiscal year 2024, the United States issued P-3 performance visas to 35 Nepali artists for cultural presentations. The U.S. Department of State’s Bureau of Consular Affairs reports that these visas were granted in specific months: six in October, three in November, nine in December, six in April, four in July, five in August, and two in September.
Two major cultural events, “Aba Nachha America” (America Dances) and “Aba Haschha America” (America Laughs), organized by Fly Nepa, brought 12 Nepali artists to the United States on P-3 visas. These artists performed at over 24 different locations across the country. In addition to these specific programs, many other Nepali artists also received P-3 visas in 2024 and performed at numerous locations across the United States.
Every year, the United States grants thousands of ‘P’ category visas. According to the U.S. Department of State’s Bureau of Consular Affairs, 35,030 ‘P’ category visas were issued in FY2023.
New York-based CPA Biraj Rijal explains that artists who perform in the U.S. must pay taxes on their earnings to comply with visa regulations. Failure to report income and pay taxes can result in visa violations.
For artists staying in the U.S. for less than six months and earning under $3,000, reporting the income is not mandatory. However, organizers generally withhold 30% tax under Form 1042-S when paying performers. Artists can later file a tax return using Form 1040-NR to claim refunds on any excess withheld taxes, Rijal explained.
Rijal further explains, “P-3 visa holders are eligible to apply for a Social Security Number (SSN). If an SSN is unavailable, they must obtain a Tax Identification Number (ITIN) to fulfill their tax obligations.”
For those staying more than six months, even earnings below $3,000 must be reported. In such cases, performers must file a regular Form 1040 instead of Form 1040-NR. Rijal noted that performers on P-3 visas often earn income documented on Form 1099 and can file taxes online even after returning to Nepal. He warned that failure to pay taxes could lead to future complications, including visa issues.
The IRS clarifies that all non-resident artists earning income in the U.S. are required to file federal tax returns and report their earnings. Payments to non-resident artists are subject to specific withholding rules, ensuring compliance with U.S. tax laws.
“Artists traveling on P-3 visas should remain aware of these obligations to avoid legal and financial issues while maintaining their visa status,” Rijal warned.
According to the IRS, if you are a nonresident alien (NRA) athlete and/or entertainer performing independent personal services in the United States, you must generally pay U.S. income tax on your U.S. source income. This includes compensation for performances, endorsements, the sale of merchandise, and royalty or other income closely related to the event. Consequently, you are required to file a U.S. federal income tax return to report and pay any U.S. tax.
“Payments to NRA athletes and entertainers are subject to special withholding rules,” the IRS states on its website.
What is a P-3 Visa?
The P-3 classification applies to someone coming temporarily to perform, teach, or coach as an artist or entertainer, individually or as part of a group, under a program that is culturally unique.
“For a P-3 visa, you must be coming to the United States either individually or as a group for the purpose of developing, interpreting, representing, coaching, or teaching a unique or traditional ethnic, folk, cultural, musical, theatrical, or artistic performance or presentation. In addition, you must be coming to the United States to participate in a cultural event or events which will further the understanding or development of your art form. The program may be of a commercial or noncommercial nature,” USCIS clarifies on its eligibility criteria.
The Immigration Act of 1990 added the O and P nonimmigrant classes to INA 101(a)(15). These new classes provided for the admission of artists, athletes, entertainers, and other persons of extraordinary ability. However, as a result of the passage of the Armed Forces Immigration Adjustment Act of 1991, the use of the O and P classifications was delayed until April 1, 1992.
Before the enactment of these laws, artists, athletes, and other performers were admitted under the H-1 (distinguished merit and ability), H-2 (temporary agricultural or non-agricultural), or B-1 (temporary business visitor) categories. The 1990 amendments also revised the H classifications, effectively barring their continued use by most performing artists and athletes.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
