I have a question regarding my tax status on my companies’ RSU/ESPP. I am not a Chinese citizen and just relocated from Shanghai to the US in July 2020. My company asked me to sell all my RSU/ESPP that I acquired in China within 6 months after I arrived in the US, because of the regulation, all of that money needs to be routed back to China, changed to the Chinese currency, and taxed around 25% there.
Now when I am trying to sell them, I found my tax residency (W8) has been expired in July, but I was asked to update to W9 as I am working in the US now. I was told that I have to pay around 30% tax in the US additionally under W9. So that means I will be double taxed in both the US and China.
Is there any tax treaty between the US and China to avoid double taxing? I only stay in the US for 4 months this year, can I keep my W8 this year and update to W9 next year?
BTW, those stocks are all acquired in the last 5 years when I worked in China before I arrived in the US in July.
