How do you rate my structure?

[Puzel12]

I am living in Thailand since 1 year, I do sole proprietorship in the Czech Republic (remotely). My citizenship is in Poland. I was trying to break all connections, that's why at the beginning I decided to go with safer tax residency bet and I have chosen Czech Republic. Now 1 year after as I changed for sure my tax residency to Thailand I am thinking about decreasing my ties with the Czech Republic. Theoretically I have dual tax residency now - Czech Republic and Thailand.

I have a tax number in Thailand + tax residency certificate (same in the Czech Republic), and I am on marriage visa in Thailand. I am thinking about setting up the USA LLC and not paying tax on income, as I don't plan to remit it to Thailand. All profits I want to put into my stock account, and I'd like to register this LLC under my polish tax number, so it will get reported there (but I am not tax resident there since 1 year, so they shouldn't care). The reason why I want to register it on my Polish data is because I don't trust Thailand as much as Poland (country in the European Union). I don't think they will go after my profits, especially that I am working legally. + there are confusions in Thai law according to USA LLC, If it's considered as personal income, or business income. Personal income is taxed even when remitted the next year, and you are not allowed to work without work permit. Business income can be tax-exempt if remitted in the next year, and you don't need to work permit since it's business, not you.

What do you think about this structure, and will Thailand know about my income? Should I then keep my stock account under polish data too, but don't pay tax as I am tax resident in Thailand?

I would love to hear some opinions. I talked with multiple tax advisors and all of them say different thing.

 

[startfleetio]

The fact that you are managing the company from Thailand makes Thailand the place of effective management of your offshore company. Of course you would have to pay for thai taxes. That said, if you are merely a shareholder/partner/member of the company, and the day-to-day management are done outside of Thailand, the profits (or dividends) that you repatriate to Thailand are tax-exempt the next year.

 

[Puzel12]

The fact that you are managing the company from Thailand makes Thailand the place of effective management of your offshore company. Of course you would have to pay for thai taxes. That said, if you are merely a shareholder/partner/member of the company, and the day-to-day management are done outside of Thailand, the profits (or dividends) that you repatriate to Thailand are tax-exempt the next year.

how can they know about my company if I dont take money to thailand at all? I take only "savings". Around 1000$ per month.

US LLC will be reported as far as I know to my country of citizenship - Poland. Because I will register it under polish details.

 

[Sols]

I would rate anything that isn't vetted by a local lawyer and in line with local laws zero out of five stars. If you have spoken with local tax advisers and they give conflicting information, go with the best one (most reputable) and get them to write you a legal opinion. Or ask them for a structure that they know to work and be lawful.

Otherwise, your structure might be relying on lack of knowledge by your local tax office and/or lack of enforcement. If either of those change, you go from 0% tax to 100% prison.

US LLC is not reported to Poland, because companies aren't reported. Company bank accounts are reported, and that reporting is done based on where you are resident. If you lie to your bank and say you live in Poland, you might avoid reporting to Thailand. That is unless the bank for some reason suspects otherwise and either starts asking questions or simply determines you are Thai based on IP address, phone number, incoming/outgoing transactions, and so on.

Providing false or misleading information to financial institutions is a crime. You probably won't get prosecuted for it, but if the banks get wise to you having provided inaccurate statements of tax residence, it can be within their rights to freeze your accounts (with money in them) pending an investigation and/or court order to release. Tax evasion is a predicate crime to money laundering, so it's a pretty serious offense.