Jose is not liable to U.S. tax regulations even though he has never been physically present within the country. According to the tax policies in the U.S, non-citizens who gain income from stock investment is not subject to withholding tax on his capital gain. Ideally, Joe is engaged in the sale of a company’s stock that operates in the country. Considering he is a citizen of Mexico an never present in the US, his stock which is considered as personal property cannot be subject on withholding tax on the grounds that his a non-US person. In the occasion that Joe resides in the country for 185 days during the taxable year, then he is his net gains from his stock sales is subject to tax. The rule strictly applies since the capital gains from Joe’s activities are from a source within the United States (Delaware Corporation). According to the Internal Revenue Service, if a non-resident of the US and have been present in the country for 183 days or more, tax laws suggest an imposition of a 30% (or lower based on treaty) tax of exchanges or sale of capital gains from U.S source incomes (Internal Revenue Service, n.d). However, if the tax is subject to elimination or reduction based on the provisions of tax treaties. [Show Less]