Can an employee working from India get equity compensation from the employer who is registered in the USA? The employee does not hold a work visa in the USA and the employer does not have a registered entity in India. If they are allowed to hold equity, then where do they pay taxes - in India or the USA?
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1The US does not tax earned income of foreigners who are not physically present in the US. Capital gains might be another matter; I do not know. Indian labor law may have something to say about the legitimacy of the arrangement.– phoogCommented Jul 1, 2017 at 17:08
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@phoog Thank you. Do you know if the Indian worker is allowed to hold equity in the American company?– moonstarCommented Jul 1, 2017 at 17:10
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1I don't know anything prohibiting it, but I don't know much about Indian law. There's certainly nothing in US law prohibiting it, whether the foreigner is an employee or not.– phoogCommented Jul 1, 2017 at 17:12
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