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I am currently trying to settle on a transfer of stock being

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Hi, I am currently trying to...
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: 2 years ago.Category: Tax
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Answered in 5 minutes by:
10/23/2015
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,141
Experience: Taxes, Immigration, Labor Relations
Verified

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.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

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If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

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Lev
Lev
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Category: Tax
Satisfied Customers: 30,141
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