I am not an international tax specialist (though I work with them in constructing debt-based IP financing) but general rule of thumb
a) if US citizen, you are taxed on worldwide income (and therefore screwed either way) b) if tax resident (spend more than 50% time in US) then double taxation treaties usually apply c) if receive ESOP as beneficiary of trust (zero capital gains tax in NZ) then if treated as employee a W-9 form has no US tax liability I don't know what you mean by no trusts in US. They got countless trusts as popular investment stucture for overseas investors. Lawrence http://www.linkedin.com/in/drllau On Saturday, 30 June 2012 00:40:33 UTC+13, [email protected] wrote: > > How much of this works if the company is US based? > > If it's a US company do the tax issues still apply when Australians are > holding the shares? > > If the Trusts are a good option, given there aren't Trusts in the US, how > does it work for a Trust to hold US shares? > > On 1 April 2012 08:26, Geoff McQueen | AffinityLive < > [email protected]> wrote: > >> I've had some good advice and spend some $K's on this. >> >> General vibe: >> 1. Create a unit trust. >> 2. Allocate employees units in the trust >> 3. The trust buys shares or options (it doesn't matter which) from the >> company, with money loaned from the company. No tax event occurs because >> the shares/options are acquired for face value and the money comes as a >> loan from the company to the trust. >> 4. When the employees want to sell their shares or exercise their >> options, they either pay off the loan or the company pays for the loan with >> after tax money as part of their employee salary/consideration and the >> employee is taxes as normal income for the conversion. This hopefully won't >> be a problem because at that time they're selling the shares, so they have >> money in their hands and the tax bill, while sucky, isn't bankrupting. >> 5. You get a tax ruling from the ATO for the trust deed and the >> arrangement so it is locked in and the ATO validates it as legit. >> >> I think there is an opportunity for a single central trust to be set up >> in AU and administered for a small fee to handle this for all Aussie >> startups. LMK if anyone wants to take that idea and run with it and I'll >> pass you all I've learned and some intros to the folks who make the >> mechanics happen... >> >> Geoff >> >> >> On Sat, Mar 31, 2012 at 05:35, Mick Liubinskas (Pollenizer) < >> [email protected]> wrote: >> >>> Anyone had any luck with a good system to lock away some ESOP in >>> advance in Australia? >>> >>> It really does suck that we don't have better support for a key >>> currency of startups. Any govt types listening? >>> >>> Mick "Trigger Price" Liubinskas >>> >>> -- >>> You received this message because you are subscribed to the Silicon >>> Beach Australia mailing list. Vist http://siliconbeachaustralia.org for >>> more >>> >>> Forum rules >>> 1) No lurkers! It is expected that you introduce yourself. >>> 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs >>> >>> >>> To post to this group, send email to >>> [email protected] >>> To unsubscribe from this group, send email to >>> [email protected] >>> For more options, visit this group at >>> http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en >>> >> >> >> >> -- >> *Geoff McQueen* >> CEO >> >> <http://www.affinitylive.com/?utm_source=signature&utm_medium=email&utm_campaign=Signature> >> Cell: +1 650.450.4384 >> Skype: geoffmcqueen >> GTalk: [email protected] >> >> <http://www.affinitylive.com/tour?utm_source=signature&utm_medium=email&utm_campaign=Signature><http://www.affinitylive.com/product/demo?utm_source=signature&utm_medium=email&utm_campaign=Signature><https://signup.affinitylive.com/?utm_source=signature&utm_medium=email&utm_campaign=Signature> >> >> -- >> You received this message because you are subscribed to the Silicon Beach >> Australia mailing list. Vist http://siliconbeachaustralia.org for more >> >> Forum rules >> 1) No lurkers! It is expected that you introduce yourself. >> 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs >> >> >> To post to this group, send email to >> [email protected] >> To unsubscribe from this group, send email to >> [email protected] >> For more options, visit this group at >> http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en >> > > -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
