Exercising Us Stock Options

[kookaburrah]

All,

I am about to move to Thailand, and am curious about how I will be able to exercise stock options (left from previous employment) awarded by US company.

I will live and work in Thailand, and these options were awarded back in 2006. The money will NOT be brought into Thailand.

I assume I will need to pay taxes to someone. Do I have a choice?

I hope this makes sense. Never could make much of it on this topic.

Thanks to all!

A

PS. I should say that the money would be paid into a bank account in my name in mainland UK. I am neither British nor American and am not a resident of either country.

Edited July 31, 2008 by kookaburrah

[Misty]

You'll want to seek advice from a competent tax advisor or tax planning firm.

Something to consider: These options were awarded as compensation for work you did. Where did you live and work when you earned this compensation? That's the key to how you will be taxed. You do not have a choice.

You mentioned these were US stock options. Presumably they are held by a US custodian? That custodian can likely answer some questions--at least regarding what tax they will withhold when you exercise.

Cheers, Misty

All,

I am about to move to Thailand, and am curious about how I will be able to exercise stock options (left from previous employment) awarded by US company.

I will live and work in Thailand, and these options were awarded back in 2006. The money will NOT be brought into Thailand.

I assume I will need to pay taxes to someone. Do I have a choice?

I hope this makes sense. Never could make much of it on this topic.

Thanks to all!

A

PS. I should say that the money would be paid into a bank account in my name in mainland UK. I am neither British nor American and am not a resident of either country.

Edited August 1, 2008 by Misty

[kookaburrah]

Thanks for your answer, Misty.

I was working and living in the UK, at the time.

I find it hard to accept that I would have to pay taxes in Britain when I am no longer a resident there and am not a British national. I was hoping that the taxes you pay when exercising stock options are subject to your situation at the time of the exercise, not at the time of the award.

The options are indeed being held by a custodian in the US. I know that while I was living in Britain I had the option to pay British taxes only, and not US taxes. Maybe because they have a tax treaty in place.

Argh. This is confusing!

Has anyone ever gone through a similar situation?

Cheers!

A

You'll want to seek advice from a competent tax advisor or tax planning firm.

Something to consider: These options were awarded as compensation for work you did. Where did you live and work when you earned this compensation? That's the key to how you will be taxed. You do not have a choice.

You mentioned these were US stock options. Presumably they are held by a US custodian? That custodian can likely answer some questions--at least regarding what tax they will withhold when you exercise.

Cheers, Misty

All,

I am about to move to Thailand, and am curious about how I will be able to exercise stock options (left from previous employment) awarded by US company.

I will live and work in Thailand, and these options were awarded back in 2006. The money will NOT be brought into Thailand.

I assume I will need to pay taxes to someone. Do I have a choice?

I hope this makes sense. Never could make much of it on this topic.

Thanks to all!

A

PS. I should say that the money would be paid into a bank account in my name in mainland UK. I am neither British nor American and am not a resident of either country.