How much is the tax paid on your stock grant if you work for a foreign company?
As an Amazon UK employee I pay 50.28% of witholding tax to the US govt apart from UK capital gains. This effectively means 50% of my stocks are sold as soon as they are granted which means my stock grant is 1/2 of whatever the initial offer specified. (Other option here is to go through a painful process of wiring cash to Morgan Stanley to pay upfront the withholding tax). This is not mentioned anywhere when you accept an offer so it would be nice to know how much this works out to in other companies/countries? Thanks
I'm not asking for tax advice. I want to know how this number varies across countries/companies.
I got stung by this too in UK recently. When more than 50% of your money is siphoned away by the government simy because its RSUs vesting then there is something pretty wrong with thr system. In India RSUs are taxes under capital gains tax which works out better than taxation on salary.
In India RSUs are charged as income tax bracket and you get shares equivalent to (vested - tax) amount. During sale, you have to pay the capital gain tax. This is similar to US/UK, just that our taxes are 30%
Similar in Canada and US , responsibility is with you to understand local tax laws and how they affect you, it's not up to the company to give you tax advice.