cardot_francois[at]yahoo.fr (cardot_francois[at]yahoo.fr) wrote:

- quote -

The US advisors are not acting in an unpaid fashion if they
are receiving stock for their advisory services. The stock
received is their compensation and they will be fully taxed
on it for U.S. tax purposes. Assuming that the entity is an
operating entity and that it is not controlled (voting or
value) by U.S. shareholders, then there are no special U.S.
tax concerns with regard to receiving stock in an overseas
company. There may however be local tax concerns (potential
withholding taxes on dividends, transfer taxes or income
taxes on share transfers, etc.).

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cardot_francois[at]yahoo.fr wrote:

- quote -

Probably taxable to the recipient, at the current market
value of the stock received. I'm not aware of any special
concerns.

Stu

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An emerging Portugese company, current assets all owned by
its founder, is about to receive modest venture funding
(I.e., a few million Euros) from EU investors.

[Actually it's a RE-emerging company; previous version was
dissolved by US venture investors following telecom boom and
crash. The founder, a Portugese resident and citizen, then
acquired IP assets and Portugese facilities at fire sale
prices.]

Founder wants to grant (i.e., give) small amounts of stock
to several US advisors from previous company who will
continue on (unpaid) Advisory Board for future company.

Is giving or granting stock in this fashion a taxable event,
i.e. taxable income to US recipients? Any special concerns
for US citizens in receiving stock in an overseas company?

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