Lets say someone is living in Tax free country or country where foreign sourced income is tax free. You are paying yourself money as a salary from your company offshore, or you are getting profit from US LLC as a non-resident.
What happens if after 3 years you managed to save up $500000 and someone asks (government or whatever tax authority is your country of citizenship) you where this money comes from?
You don't really have any way to prove it, as you didn't pay tax on it. The foreign income was exempt from tax, so you didn't need to declare it. Do you just show them transactions between you and your US LLC? Will it be enough, or is there any better documentation that one should keep?
Another thing that comes to my mind is: Some countries ask you for proof of funds before you buy real estate, so you may need to show where the money came from.
What happens if after 3 years you managed to save up $500000 and someone asks (government or whatever tax authority is your country of citizenship) you where this money comes from?
You don't really have any way to prove it, as you didn't pay tax on it. The foreign income was exempt from tax, so you didn't need to declare it. Do you just show them transactions between you and your US LLC? Will it be enough, or is there any better documentation that one should keep?
Another thing that comes to my mind is: Some countries ask you for proof of funds before you buy real estate, so you may need to show where the money came from.