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Old 04-05-2012, 02:53 PM
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capital gains non-U.S. citizen living outside the U.S

I am a non-U.S. citizen living outside the U.S. and I have never lived in the US.
I used to hold shares in the US as part of an Employee Stock Purchase Plan from 2001. I left the company in 2002.
In 2011 the company merged and the shares have been converted into cash. Federal Income Tax Withheld has retained 28% of the value.

Is there any posibility to claim back any of this tax paid? Is this 28% the correct tax? Should I paid this in the US or in my home country ?



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Old 04-06-2012, 12:35 AM
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“In 2011 the company merged and the shares have been converted into cash. Federal Income Tax Withheld has retained 28% of the value.”--->You had to file IRS Form W8BEN to establish that you are not a U.S. person and to claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the US has an income tax treaty.
“Is there any posibility to claim back any of this tax paid?”----> Generally, you must file a tax return after the end of the tax year to claim a refund of withholding. You 1040NR, U.S. Nonresident Alien Income Tax Return. If you ned to file 1040NR.You should also attach a copy of the Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, showing the taxes withheld to your Form 1040NR.
“ Is this 28% the correct tax?”--->30%;you, as a foreign person, are subject to U.S. tax at a 30% rate on income you receive from U.S. sources that consists of dividends and interest.
gambling winnings by nonresidents of the U.S. are generally taxed at a flat 30% tax rate.
Please visit the IRS Website here; http://www.irs.gov/pub/irs-pdf/iw8ben.pdf
The Taxation of Capital Gains of Nonresident Alien Students, Scholars and Employees of Foreign Governments
“ Should I paid this in the US or in my home country ?”---> I guess as yur world wide income, you may have to pay the LTCG on your return in your country. Please check it with your taxing authority(ies) in your country.


Last edited by Wnhough : 04-06-2012 at 02:55 AM.


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