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Tax Challenges of Multinational Employment Benefits: RSUs, Stock Options, Deferred Compensation, Retirement Plans

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, August 10, 2021

Recorded event now available

This course will explain the taxation of multinational benefits for residents and nonresidents, including RSUs, stock options, retirement plans, and deferred compensation. Our panel will explain the tax considerations of these perks to lessen the overall tax burden for taxpayers subject to taxation in multiple countries.

Description

RSUs and stock options are dissimilar benefits. RSUs offer ownership of a company when vested, while stock options provide an opportunity to purchase shares in a business. If RSUs vest while the employee lives outside the U.S., they could be taxed by the resident country. When holding and selling RSUs, owners need to consider any tax treaties between the U.S. and the resident country, the foreign tax credit, and residency status.

Even more complex is the taxation of retirement plans and pensions. Pensions can be treated as foreign grantor trusts creating PFIC issues. Earnings on non-qualified foreign plans can be subject to taxation as earned. However, treaty benefits could provide relief. International tax advisers working with taxpayers working in multiple countries need to understand how the U.S. and other countries tax employee benefits.

Listen as our panel of international experts explains tax considerations for taxpayers receiving benefits from U.S. companies and businesses outside the U.S.

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Outline

  1. Multinational benefits: introduction
  2. RSUs and stock options
  3. Pensions and retirement income
  4. Deferred compensation
  5. Other benefits
  6. Treaty relief
  7. Foreign tax credits
  8. Planning opportunities

Benefits

The panel will cover these and other critical issues:

  • Determining whether a foreign pension plan is qualified for U.S. tax purposes
  • When earnings on foreign plans may be subject to current taxation
  • Potential tax consequences of vested RSUs when living abroad
  • Treaty benefits available to mitigate or eliminate taxation of certain benefits

Faculty

Howe, Claudia
Claudia Howe, CPA
Partner
Glomotax Consulting

Ms. Howe is a Partner at Glomotax Consulting, specializing in international taxation. She and her team partner with...  |  Read More

McCormick, Patrick
Patrick J. McCormick, J.D., LL.M.
Partner
Culhane Meadows Haughian & Walsh

Mr. McCormick specializes in the areas of international taxation, tax compliance, and offshore reporting...  |  Read More