2

I am a German employee (German citizenship, living and working in Germany, no connections to the US) of a NASDAQ-listed company and have received stock options (more exactly RSUs, Restricted Stock Units) for the company. Am I eligible for Tax Treaty Benefits according to the treaty between the US and Germany?

5
  • 1
    what taxes are you required to pay in the US and why?
    – littleadv
    Feb 10, 2022 at 17:52
  • 1
    @littleadv: none that I know of, but that's part of my problem - logic tells me that I won't have to pay US taxes when selling these shares, but tax laws are not always logical...
    – rob74
    Feb 10, 2022 at 18:01
  • 1
    Generally RSU grants are held through brokerages who are well aware of all the potential complexities. Have you been asked for a W8/W9 form?
    – littleadv
    Feb 10, 2022 at 18:08
  • @littleadv: unfortunately my company is only providing a website/app ("Global Shares"), and to sign up for that I have to specify if I want to claim Tax Treaty Benefits. The app's support only told me that I won't be able to change this setting later - both they and my company's HR department are taking the position that they are not allowed to offer me tax advice, and to ask my tax advisor. I don't have one, but one colleague I asked talked to their tax advisor, and they couldn't provide a definite answer either...
    – rob74
    Feb 10, 2022 at 18:21
  • I'm not a tax advisor either :) I'd suggest that you say that yes, you do want to claim treaty benefits. The tax treaty provides that you only pay taxes on your proceeds/gains in Germany (article 12(5) for gains and article 15 for grants)
    – littleadv
    Feb 10, 2022 at 18:28

1 Answer 1

0

I'd suggest that you say that yes, you do want to claim treaty benefits. The tax treaty provides that you only pay taxes on your proceeds/gains in Germany (article 13(5) for gains and article 15 for grants)

2
  • In the treaty I linked above, article 12 refers to "royalties" (5 is "permanent establishment") and 15 refers to "dependent personal services". Not sure how these relate to my situation? Article 13 refers to gains, but there is no article for "grants" (at least not using this term). I thought the most relevant article for me would be 13 ("relief from double taxation")?
    – rob74
    Feb 25, 2022 at 10:58
  • @rob74 sorry, you're right - I was referring to 13(5). Your grant is essentially a salary (paid for dependent personal services) that is paid in stocks (which you later sell, aka alienate, hopefully for a gain). You would probably want to pay someone to provide you guidance since you're actually asking for legal advice here. I'm not a lawyer and not a CPA.
    – littleadv
    Feb 25, 2022 at 18:30

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .