# Capital gain taxes/withholdings



## cintakasih (Nov 11, 2020)

I'm not a US citizen and not a Green Card holder. I was employed in US in a private company in 2006 and was awarded stock options. 5 years ago, I terminated the employment because I wanted to move back to my country of origin. I was offered to exercise the stock options and I did. I have been a shareholder ever since and have never visited US again. Just recently, this company was acquired and as part of the acquisition, a pay out has been made to all shareholders.

Since I'm now a non resident alien, do I need to pay capital tax gains on these stocks? Does my prior employment have any tax consequences? Will the payer agent withhold any taxes from me? Do I need to submit a W-8BEN to the payer agent?

Thanks for the help!


----------



## Bevdeforges (Nov 16, 2007)

Normally when payments like this are made through an agent, they will either withhold the appropriate NR taxes before they remit them to you or else they'll hold the payment in your account (but generally with the appropriate tax already taken). If they need a W-8BEN, they'll ask you for one (assuming they don't already have one on file for you).

I would wait for instructions from the payer agent.


----------



## NickZ (Jun 26, 2009)

Capital gains should be paid in your country of residence. There normally is no withholding on capital gains. 

How is the stock held? If it's in a brokerage account you likely should have already filed the W8BEN. 

I don't know if the US has a deemed disposition on leaving the country but if it does you likely should have paid taxes then. But if you left right after exercising the options there likely wasn't much of a value change.

Some transactions can have less than normal situations. But if you read the merger docs this should be listed.


----------

