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?

  • 1
    The 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.
    – phoog
    Jul 1 '17 at 17:08
  • @phoog Thank you. Do you know if the Indian worker is allowed to hold equity in the American company?
    – moonstar
    Jul 1 '17 at 17:10
  • 1
    I 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.
    – phoog
    Jul 1 '17 at 17:12

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