Gift Tax for my son in the USA living in Thailand

[AtMo]

I'm starting a UK LLP with myself as a partner and a US LLC. I will be living mostly in Thailand but less than 6 months per year, 3 months in the USA, and some other time in other Asian countries.

As I'm not living in any of these countries for longer than 6 months, I think I will have the status of non-tax resident in any of these countries so I will be paying 0 tax.

I will gift my son, who is living in the USA, most of my profits from the UK LLP. Do I need to pay gift tax in any of these countries? or would the IRS question my son for the SoF as they are not taxed anywhere in the world?

 

[Mercury]

Regarding Thailand, in theory being non-resident for tax purpose you could pay gift tax (exceeding‌ 20M THB) if such gift is considered local-sourced income and you declare it in Thailand.‍
In reality, if every gift transactions happen outside of TH no need to bother as⁠ there will be no enforcement.

Residence rule applies to foreign-sourced income, depending on the status⁤ of the foreigner as a tax resident in Thailand or not. The Thai tax year⁣ follows the calendar year, and tax residency is defined as when a foreigner stays in⁢ Thailand for a period or periods aggregating 180 days or more in any tax year.︀ A tax resident earning foreign-sourced income shall be subject to PIT in Thailand if such︁ income is brought into the Kingdom in the same tax year in which such income︂ is gained. On the other hand, if the foreigner is not a tax resident, PIT︃ in Thailand does not apply to foreign-sourced income.

The Gift Tax is a particular type︄ of PIT for which the above source rule and/or residence rule also apply. In this︅ case, a foreigner receiving movable properties (cash, car, jewelry, etc.) from an ancestor, a descendant,︆ or a spouse as a sustentation, support, or gift, will be subject to a 5%︇ Gift Tax on the portion exceeding 20 million THB, in each tax year.

https://www.ilct.co.th/taxation-for-foreigners-under-thai-laws/

 

[AtMo]

Thank you for the reply.‍

Do you think the USA or my citizenship country would question it? as the funds⁠ are not taxed in any of these countries?

 

[Wellington]

US will always be interested...

 

[AtMo]

I got it, but I‌ think it is completely legal, isn't it?

 

[Wellington]

Where the US is concerned, i wouldn't take advice on here but specifically‌ speak to a lawyer who is skilled on such, About - Lesperance and Associates is someone i can recommend based on personal relationships with people that have personal relationships with‍ him.

Where the US is concerned i wouldn't like to personally advise...

 

[AtMo]

Thank you for your advice, I will contact a lawyer in this case.

 

[Don]

Maybe your son is better off with a 100-year interest free loan.‍

Just saying.

 

[22kay]

There is no tax in US if you receive inheritance from another country. But there‌ is an informational return to file if you receive more than $100K in value.

 

[AtMo]

Thanks for your reply, I will definitely take that option into‌ consideration.