On ESOP value over US$ 60,000 US estate tax up to 40% can be levied after death of even a non-US resident; Here’s how to manage its impact on legal heirs

Many Indians working in higher positions at US-based companies like Alphabet, Meta, Snap, and others often receive employee stock options (ESOP) or restricted stock units (RSUs) as part of their salary even while working in India. These shares are listed on US stock exchanges, classifying them as US assets according to the US tax law.

Hardik Mehta, Lead- Tax, Ionic Wealth, said to ET Wealth Online that even if the said employees have never lived in the United States, their US-based shares could still be liable for US estate tax after they pass away, provided the total value of their US-based assets is over $60,000 (for non-US citizens/ non-US residents).