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US taxation of stock purchase plan for non-resident alien

Personal Finance & Money Asked by Sharad on June 19, 2021

An individual in USA is a non-resident alien for tax purposes for the whole year. He works for a US corporation in US. He buys stocks under the stock purchase plan of the company and sells it in the same financial year. How should it be taxed, does it become income effectively connected with the trade or should there be a flat 30% tax on it

One Answer

From my research it looks like its an income NOT effectively connected with the trade of business. This page has the exact details https://www.irs.gov/individuals/international-taxpayers/effectively-connected-income-eci

Answered by Sharad on June 19, 2021

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