Can we keep our US Vested RSUs when moved back to a different country ( Non US Citizen or Non GreenCard Holder )

Forum|Forum|1 year ago
July 29, 2024
1 reply
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Hello ,

I stayed in US for over 10 years. During this period, my company gave some RSUs. These are already vested and in my brokerage account.

Planning to move back to India permanently early next year. Below are my questions. Appreciate your guidance

1. Can we continue to keep those RSUs and sell them in future from India OR is it better to sell them now and not worry about complex taxation.

2. What are the tax implications when sold them from India after few years of return to india. Will they be taxed in India or US

pk12_2

Employee

@Raj2310 ,

(a) Can you continue to hold the vested RSUs even when you have abandoned your GreenCard and live abroad ---- YES

(b) Is there any tax advantage in selling these here in the US as opposed to sell these later in India ----- Depends on the then exchange rate and if these stocks are listed in India. If these stocks are tradeable ONLY in US ( like OTC stocks ), then you have to sell these through your broker in the USA, considered as US sourced income and be taxed both in India and US. Note that as NRA ( Non-Resident Alien ) the tax rate may be the flat 30%. -- depends on the tax treaty.

(c) Note that being a Long-Term Resident, when you file for abandoning your residency ( I-407 , I think ) you also have to file a form 8854 to cancel your Tax Residency. IRS may want you to pay tax on the gain of these RSUs till date ( thus increasing your basis ).

Please this from the IRS ---> Expatriation tax | Internal Revenue Service (irs.gov).

Is there more I can do for you ?

Namaste ji

Raj2310Author

Thanks @pk12_2

pk12_2

Employee

@Raj2310 , if I have satisfied your query, please consider up marking or tell me what more I can do to earn it --- we are volunteers here helping other users

Namaste ji