Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I am a resident of Dubai, UAE. A NYSE registered dealer is

Customer Question
arranging sale of some of...
I am a resident of Dubai, UAE. A NYSE registered dealer is arranging sale of some of my shares shares. He is asking for up front payment for NYS tax of 8.875% on the deal from me.

Is this the normal procedure / rate? He states I can apply for rebate later as I am non resident. However I am concerned about my up front payment.

Chris Cuff
Dubai
[email protected]
Submitted: 6 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 hours by:
4/1/2011
Tax Professional: Robin D., Senior Tax Advisor 4 replied 6 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,867
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Robin D :

Hello and thank you for using Just Answer.

Robin D :

The tax is generally withheld (NRA withholding) from the payment made to the foreign person.
The following amounts are not subject to NRA withholding.



  • Portfolio interest on bearer obligations or foreign-targeted registered obligations if those obligations meet certain requirements.

  • Interest on deposits - bank deposit interest that is not effectively connected with the conduct of a U.S. trade or business.

  • Original issue discount on obligations payable 183 days or less from the date of original issue (Refer to Short Term Original Issue Discount (OID) Interest).

  • Original issue discount paid on the sale of an obligation other than a redemption (Refer to Original Issue Discount (OID) Interest).

  • Amounts paid as part of the purchase price of an obligation sold between interest payment dates (Refer to Sales of Bonds Between Interest Dates).

  • Nonbusiness gambling income of a nonresident alien playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States (Refer to Gambling winnings).

  • Insurance premiums paid on a contract issued by a foreign insurer.

    Generally New York State follows the federal rules on withholding requirements.

Robin D :

If your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States. When a foreign person engages in a trade or business in the United States, all income from sources within the United States connected with the conduct of that trade or business is considered to be Effectively Connected Income (ECI). This applies whether or not there is any connection between the income, and the trade or business being carried on in the United States, during the tax year.

Customer:

I am worried/suspiscious that I am being asked to pay the tax before conclusion/receipt of the monies from the sale of my shares and wonder why the tax cannot be witheld from the monies I will receive as you state is the general case. On what grounds can the dealer insist I pay in advance. (IMPORTANT NOTE:- The registered dealer, who is part of a Canadian company, PanAm Advisory based in Vancoever, approached me in the first instance saying he had a buyer willing to pay above the market price)

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,867
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,867
15,867 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

15,867 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Tax Question: Non-Resident Withholding Tax, Franchise Tax
Tax Question: Non-Resident Withholding Tax, Franchise Tax Board, CA HISTORY: 1. The property is in California 2. The owner resides in outside of California 3. Metro Property Management collects monthl… read more
abci168
abci168
Principal
27 satisfied customers
What is the rate of tax I will pay on the gain from the sale
What is the rate of tax I will pay on the gain from the sale of my house … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
I was a foreigner student at State University. I applied
Hi, I was a foreigner student at Washington State University. I applied 'Tax refund' through a tax agency about 3~4 years ago, but still no answer I got back. How can I get refunded?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
Recnetl;y i recieved and withholding tax bill from the state
recnetl;y i recieved and withholding tax bill from the state of ri divison of taxation fromm 1999, is there a stue of limitations on this … read more
Robin D.
Robin D.
Senior Tax Advisor 4
15,867 satisfied customers
What are the federal and Oregon state taxes on profit of
What are the federal and Oregon state taxes on profit of sale of my home. My wife and I are age 81 and 77 respectively. I expect the profit will be about $400,000. … read more
abci168
abci168
Principal
27 satisfied customers
This question is about foreign gifts and loans, taxes / the
This question is about foreign gifts and loans, taxes / the IRS. Im currently buying my wife out of the house title, and need $20,000 to do that. My dad is offering most of that money in the form of a… read more
abci168
abci168
Principal
27 satisfied customers
Worked in the Bronx, had NY state withholdings taken out.
Worked in the Bronx, had NY state withholdings taken out. Lived in CT. When it comes to answering the following question, how would I best answer this? Question asked: New York IT-203 - Yonkers Reside… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
717 satisfied customers
Triple tax free ny muni bonds are federal,state and city tax
triple tax free ny muni bonds are federal,state and city tax free. is this correct. if a ny resident moves to ct, do they only pay state tax on the ny muni or all three.… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
717 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
What is the percent of federal tax on an estate sale of
what is the percent of federal tax on an estate sale of property? … read more
taxmanrog
taxmanrog
Master\u0027s Degree
697 satisfied customers
A Nonresident Alien just took steps towards becoming a a
A Nonresident Alien just took steps towards becoming a a U.S. Permanent Alien in June 2017. He is an airline pilot with a tax home in Hong Kong. He has a Mandatory Provident Fund established with the … read more
Robin D.
Robin D.
Senior Tax Advisor 4
15,867 satisfied customers
My mom is a nonresident alien, she spends 1 month out of a
My mom is a nonresident alien, she spends 1 month out of a year in the US. If the has a brokerage account in the US, and buys and sells domestic stock, are capital gains, short or long, tax exempt?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Income from federal return incorrectly transferred to state
income from federal return incorrectly transferred to state return … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
How are the proceeds of sale of a LLC interest taxed; as
How are the proceeds of sale of a LLC interest taxed; as ordinary income or as capital gains? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,215 satisfied customers
How do you report nonresident alien (someone does not have
How do you report nonresident alien (someone does not have green card or non US citizen) 's capital gain on sale of stock… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
My friend is a nonresident alien student in the US. If he
My friend is a nonresident alien student in the US. If he receives a wire transfer from his home country, am I correct that is nontaxable income, and does it matter whether the money comes from his ow… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How much Federal and state tax should I withhold from a
How much Federal and Virginia state tax should I withhold from a pension check of $392.00. Thank you. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Regarding Form 1040NR US nonresident alien income tax
regarding Form 1040NR US nonresident alien income tax return: where do you report U.S bank interest on the form… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x