Private-company RSUs · Carta · 2026

Your RSU is an IOU.
Nothing happens on your vest date.

A startup RSU is a promise to hand over shares later, and "later" needs a second key: an IPO, a tender the company blesses, or an acquisition. That single detail decides whether your equity is a house, a small cheque, or nothing.

TWO KEYSTime vesting + a liquidity event. Both, or you own nothing.
ONE TAX DAYEverything is taxed the day it settles — at ~22% withheld, usually not enough.
ONE LOCKUPPost-IPO you watch the price move for ~180 days before you can sell.

Three doors out

Every private RSU that has time-vested is sitting in front of the same fork. There is no fourth door, and on Carta you cannot sell your way out of it — Carta keeps the records and administers tenders; it is not a market.

RSU grant a promise, not stock Time-vested no shares · no tax · no vote Gate: 2nd key liquidity event required also: ~7-year expiry on the units 01 · IPO settles at the IPO price 22% withheld, then 180-day lockup — price moves without you 02 · Tender offer company waives the 2nd key you sell 20–25% of vested, at a discount to the last round 03 · Dies / sells cheap common sits under the stack units never settle — no tax, no cash, no recourse $ $$$ real money — rarely the number on the headline $ $$ real money, smaller and sooner — no lockup $0 years of vesting, nothing to tax and nothing to spend
A
RSU granta promise, not stock
B
Time-vestedno shares · no tax · no vote
C
Gate · the second keya liquidity event is requiredalso: ~7-year expiry on the units
then one of three — no fourth door
01
IPOsettles at the IPO price · 22% withheld, then a ~180-day lockup while the price moves without you→ $ $$$ · real money, rarely the headline number
02
Tender offerthe company waives the second key · you sell 20–25% of vested, at a discount to the last round→ $ $$ · real money, smaller and sooner, no lockup
03
Dies / sells cheapcommon sits under the stack · units never settle→ $0 · years of vesting, nothing to tax and nothing to spend

↔ swipe the diagram sideways

On Carta you see the grant and the vesting bar. Settlement, tax withholding and any tender are events the company runs through Carta — not buttons you press.

Settlement day is tax day — and the haircut is bigger than the 22%

The whole time-vested pile is ordinary income at once, valued at that day's price. Withholding is a flat 22% federal (37% only above $1M), which is below what a high earner actually owes.

SAMPLE · 10,000 RSUs × $40 = $400,000 gross
$0$136k tax$400k gross
Your basis = settlement priceA dip after that is a capital loss — deductible against $3,000 of ordinary income a year. The tax never gets recomputed.
1 year to long-termThe clock starts at settlement, not at grant. Selling earlier taxes the gain as ordinary income again.
RSU ≠ optionNo strike price, no 83(b), nothing to exercise. You can't pre-pay tax to lock in a lower value.

Three real endings

Same instrument, wildly different outcomes — and the difference was almost never the employee's effort.

Went well

SpaceX

Listed in June 2026 at $135/share. One ex-employee's 6,500 shares ≈ $880k; ~4,400 employees became millionaires on paper.

The lockup was staggered from August 2026, so shares unlock in tranches over months — you sell into a schedule, not a cliff.

Worked, but only just

Stripe

No IPO for 15 years. Instead: annual tenders — $91.5B in Feb 2025, $159B in the 2026 letter.

Stripe waives the liquidity trigger each round, so vested RSUs settle and get taxed whether or not you sell. And grants reportedly expire ~7 years after issue — 2019–20 grants were the ones racing the clock.

Got doomed

Rivian

IPO priced at $78 in Nov 2021. By lockup expiry the stock closed $28.79 — more than 60% below IPO, 80% off the peak.

Tax was fixed at settlement value while the shares kept falling. That is the lockup trap: you can owe tax on money the market took back.

Singapore · employee RSUs

If you're employed in Singapore

The two broker paths share the same Singapore tax analysis. They diverge in exactly four places: custody, the form you get, the US dividend and estate-tax tail, and the days and basis points between a share and SGD in your bank.

Block 01 · the tax spine

The tax pointwhen the bill starts

IRAS taxes the gain when your beneficial interest vests: at grant if the award carries no vesting, at vesting if there is no selling restriction, and on the date a real selling restriction lifts. For a double-trigger RSU that lands on the day the shares are actually delivered — that last mapping is a reading of the guidance, not an IRAS sentence.A lock-up, or shares nobody will buy, does not push the tax date back. The vesting bar on Carta is not the tax clock.

What it is taxed asemployment income, self-assessed

Gain = open market value on that date minus what you paid, usually zero. It is Singapore employment income under s10(1)(b), pulled in by the deeming rule s10(6). Your employer reports it on IR8A item d7 plus Appendix 8B, through AIS by 1 March.No PAYE for resident employees. The tax arrives as a bill you pay the following year, not a deduction off your payslip.

No apportionmentgrant-date test is binary

Granted while you were employed in Singapore → the full amount is Singapore income, even if you vest or exercise abroad. Granted before you joined → not Singapore income at all, wherever you are when it vests.A vesting period split across two countries does not split the taxable amount. Nothing here is pro-rated.

The later saleno capital gains tax

Singapore has no general capital gains tax. A one-off sale of shares already taxed at vest is capital in the ordinary case; badges of trade — flipping repeatedly, buying to resell, funding trades with borrowed money — are the only route back to a tax bill.The vest-date tax is final for that gain. What the sale can still cost you is a second characterisation, if your behaviour reads like a business.

If you leaveIR21 · deemed exercise

When a foreign employee ceases Singapore employment, unvested awards are taxed on a deemed exercise basis under s10(7), and the employer must hold your monies until tax clearance is issued. If the real gain comes in lower, s10(7AA) allows a revision within 5 years.Your final payslip can be held against a number computed from a valuation, not from a sale.

The sharpest trap · a right of first refusal is not a selling restriction

IRAS ruled in Advance Ruling 01/2022 that a plan letting you sell only back to the company or to a designated vehicle did not defer tax — the gain was taxed when the shares were acquired, at paper value, with no market. Only a genuine moratorium moves the date. Read the plan document, not the summary of it.

Block 02 · two employees, same grant

Same tax engine on both sides. Only custody, the form you get, the US dividend and estate-tax tail, and the friction between the share and SGD differ — which is why these are one decision, not two stories.

Case A · SG broker custody

Singapore employee, Singapore broker account

  1. GrantDouble-trigger RSU at a private company. Nothing taxable at grant.
  2. SettlementTime vest completes; an IPO or an acquisition triggers settlement. Shares are credited to the plan administrator's account, not yours: pre-IPO shares cannot sit at a retail broker at all — CDP eligibility requires fungible stock with no transfer restrictions.
  3. Tax momentOpen market value at delivery (net asset value where no market price is readily available) minus what you paid, at that day's FX rate. Employer files Appendix 8B / IR8A d7 by 1 March. Nobody withholds it — you pay on assessment.
  4. TransferOnly once listed, settled and out of any lock-up can you move the position to your SG broker by ACATS/DRS: 4–8 days typical, DRS from US$25, ACATS usually free at the receiving end.
  5. SellProceeds land in USD. Three clocks ran on this position — the plan account holding it, the lock-up, the transfer — and the price moved through all three.
  6. Cash in SGDConvert at the broker, then withdraw to a Singapore bank. Two steps, two costs: IBKR SG publishes 0.20 bp (US$2 minimum) plus 0.03% on auto-conversion.

Biggest gotcha: a Singapore broker does not withhold Singapore tax. Proximity is not withholding. The assessment lands the year after delivery; the shares were sellable long before. If the price fell in between, you still owe on the delivery-date value.

Case B · US broker custody

Singapore employee, US broker account

  1. GrantSame award, same analysis. At the liquidity event the plan broker the company designated (Morgan Stanley at Work, E*TRADE, Schwab) opens the account for you, and you file a W-8BEN.
  2. SettlementShares credit to the plan account after listing. Grab's December 2021 listing is the documented shape: platform frozen pre-IPO, restored, then roughly two days before the shares were sellable.
  3. Tax momentIdentical to Case A: same s10(1)(b)/s10(6) gain, same Appendix 8B by 1 March. A US broker does not report to IRAS and does not withhold Singapore tax either.
  4. Dividends30% withheld in the US at source, and you receive Form 1042-S rather than a 1099. W-8BEN documents your non-resident status; it does not buy a lower rate.
  5. Sell, then move the cashUSD proceeds sit at the US broker. Convert there or wire to a Singapore bank — both legs are billed separately, and the wire adds correspondent-bank friction.
  6. Estate-tax tailIf the issuer is US-incorporated, those shares are US-situs while they sit here: above US$60,000 your estate files Form 706-NA, and Singapore has no US death-tax treaty. A Cayman-incorporated Nasdaq line (Grab, Sea) is a non-event.

Biggest gotcha: the broker did not create the estate-tax exposure — the issuer's place of incorporation did. Moving the shares to a Singapore broker does not remove it, and a Cayman issuer never had it.

Block 03 · the payoff

What the broker changes

The form you getYour employer's IR8A + Appendix 8B reaches IRAS either way. An SG account adds no US tax form; a US account adds Form 1042-S, which needs a W-8BEN to be right.
Who reports, and how fastAn SG broker is a Singapore financial institution, inside CRS reporting. The US is not a CRS participant, so that account isn't in the channel and IRAS asks through the 2020 exchange-of-information arrangement. A paper-trail difference, not a tax difference.
FX and transfer frictionSG: convert in-platform, then withdraw. US: convert at the broker or wire, each leg billed, a correspondent bank in the middle.
Whether it can hold the stockPre-IPO, neither. Post-listing an SG broker can receive the position by ACATS/DRS; the US plan account already is a brokerage account.

What it doesn't change

The Singapore tax itselfSame character under s10(1)(b) via s10(6), same taxable date, same IR8A/Appendix 8B, same absence of employer withholding.
Dividend withholding30% at source either way. There is no comprehensive US–Singapore income tax treaty — a 1988 shipping and aircraft agreement and a 2020 information-exchange arrangement, and nothing else — so there is no rate to claim.
US estate taxSitus follows the issuer's place of incorporation, not the account. A Delaware C-corp is US-situs at a Singapore broker too. US$60,000 threshold, US$13,000 credit, not indexed.

Block 04 · three gotchas

30%, no reliefUS-source dividends are withheld at the statutory 30% for a Singapore resident. No treaty rate exists to claim, at either broker.
US$60,000 is the lineUS-situs stock above it means a Form 706-NA filing, and the threshold is not indexed for inflation. The account has nothing to do with it.
Two paths, two speedsAn SG account reports inside Singapore's own CRS system; a US account is outside CRS entirely. Declare it yourself — the asymmetry is about paper, not about tax.

None of this replaces the five lines in your grant doc further up — settlement mechanics sit on top of the plan terms, not instead of them.

The base rates you're actually playing against

25%Median cap on how much of your vested stock a tender lets you sell, in a company buyback (Carta).
>90%Typical subscription rate on tenders — supply is small, demand is not. You rarely get your full ask.
71Tenders Carta administered in H1 2026, ~$3B — a four-year high, +200% in value year on year.
966Startups on Carta shut down in 2024 (769 in 2023). Their RSUs never settled. Ever.

For scale: roughly 62% of seed-stage companies are gone within seven years. A double-trigger RSU at a company that never has an exit is worth exactly zero — quietly, with no tax event to remind you.

Five things to read in your grant doc

These five lines decide your outcome more than the valuation on the term sheet does.

  1. Single or double triggerSingle-trigger at a private company = cash tax on shares you cannot sell. Refuse it, or get tax support written into the offer.
  2. Expiry date on unsettled unitsOften ~7 years from grant. Units can lapse while you are still employed, fully vested, and counting on them.
  3. Does a tender count as the event?Usually no. The board has to waive the trigger — which settles and taxes your units even if you sit the tender out.
  4. Are former employees eligible, and for how long?Windows of 24–36 months are common. Leave at the wrong time and your units are stranded.
  5. How is withholding handled?Net settlement (shares sold to cover) is fine. "Pay the tax in cash at settlement" is a cash-flow problem you should size before you sign.