Gift tax in the United States
If a person is a non-resident alien for purposes of gift tax, taxation of gifts is determined in a different way. If the property is not located in the U.S., there is no gift tax. If it is intangible property, such as shares in U.S. corporations and interests in partnerships or LLCs, there is no gift tax.
Old Colony Trust Co. v. Commissioner
Thus, the company's payment of Wood's tax bill was the same as giving him extra income, regardless of the mode of payment. Further, the payment of taxes of Wood's behalf did not constitute a gift in the legal sense, because it was made in consideration of his services to the company, thus making the payment part of his compensation package. (This case did not change the general rule that gifts are not includable in gross income for the purposes of U.S. Federal income taxation, while some gifts but not all gifts from an employer to an employee are taxable to the employee.).