So while filling out my global stock plan from morgan stanley i came onto this. To me it sounds like i will be held to the 28% backup holding if this is not met but hopefully someone with a bit more knowledge would guide me through. Thanks in advance.
Definition of a U.S. person: For federal tax purposes, you are considered a U.S. person if you are:
· An individual who is a U.S. citizen or U.S. resident alien,
· A partnership, corporation, company, or association created or organized in the U.S. or under the laws of the U.S.,
· An estate (other than a foreign estate), or
· A domestic trust (as defined in Regulations section 301.7701-7).
--A non-U.S. citizen is generally considered a U.S. resident for tax purposes, if the individual (1) holds a “green card” indicating lawful permanent residence in the United States, or (2) has
a “substantial presence” in the United States for the calendar year. A substantial presence means physical presence in the United States for at least (a) 31 days during the current year
and (b) 183 days during the latest 3-year period, including all the days in the current year, 1/3 of the days in the first preceding year and 1/6 of the days in the second preceding year. If
you are a U.S. citizen resident in a foreign country or in Puerto Rico, you may not complete a Form W-8BEN. Instead, you must complete a Form W-9.
Last edited by linkarmy09; 02-11-2015 at 10:15 AM..