Thanks for that Cam, it's not at all how I imagined! Just to be clear, this withholding applies even to money paid to non-US-citizens as long as the work is done for a US firm?
Does the non-US contractor have any US legal obligations if this tax isn't properly withheld? I'm quite certain I'm doing the right thing on my UK tax returns, but I'd hate to find I had trouble doing business in the US because of old unwithheld taxes...
I, and I'm sure many others, would like to know about share options for foreign nationals - again, I'm comfortable with the UK rules and regs, but is there also some US liability for foreigners taking share options?
Yes, the withholding rules are much more strict for foreign contractors. Share options are very complicated because there's a variety of moving factors. I wouldn't be able to say very much unless I knew more.
Comments
Thanks for that Cam, it's not at all how I imagined! Just to be clear, this withholding applies even to money paid to non-US-citizens as long as the work is done for a US firm?
Does the non-US contractor have any US legal obligations if this tax isn't properly withheld? I'm quite certain I'm doing the right thing on my UK tax returns, but I'd hate to find I had trouble doing business in the US because of old unwithheld taxes...
I, and I'm sure many others, would like to know about share options for foreign nationals - again, I'm comfortable with the UK rules and regs, but is there also some US liability for foreigners taking share options?
Thanks again, your kindness is really heartening.
Yes, the withholding rules are much more strict for foreign contractors. Share options are very complicated because there's a variety of moving factors. I wouldn't be able to say very much unless I knew more.