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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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I am currently trying to settle on a transfer of stock being

Customer Question

Hi,
I am currently trying to settle on a transfer of stock being bought from me by a company in the US through a US based acquisitions company. I bought the stock through a broker in Hong Kong and they didn't lodge the W-8BEN form that I sent them because the stock had not listed yet. It still hasn't been listed however a US company is undertaking an aggressive takeover of the company by buying 51% of the stock. The US acquisitions company has requested the filed W-8BEN to allow the 15% US tax to be taken from the settlement sum. As I am unable to provide a filed W-8BEN form they have informed me I have to pay 30% tax now to enable to release of the settlement sum however this has to be provided by me and it can't come out of the settlement sum. Is this correct? If it is I can't raise the $38k USD tax. Why can't they take it out of the settlement figure?
Thanks for your assistance.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

If you are asked to pay taxed upfront - that sounds as a scam...
Be very careful as you might not see the money again.

Several issues...
First of all income tax withholding is taken out of proceeds and sent to the IRS. Taxes are NOT paid upfront.

Second - when shares are purchased from you - you will incur a capital gain - and the capital gain is NOT taxed for nonresident alien.

Expert:  Lev replied 1 year ago.

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