The Taxation of RSUs in an International Context
By Anthony Diosdi The following is a general summary of the cross-border tax consequences associated with the grant of restricted stock units (“RSUs”). A restricted stock unit (“RSU”) is a form of stock based compensation used to reward employees. Restricted stock units vests at some point in the future. Unlike stock options, RSUs have some value upon vesting. That is, unless the underlying stock becomes worthless. It is common for U.S. multinational corporations to assign U.S. employees to overseas affiliates for short or long term assignments. These employees may have received RSU grants before their foreign assignment began. This can trigger income and social security tax consequences related to the RSUs in multiple jurisdictions. The rules relating to the taxation of RSUs in an international context are often complex and…