Paying taxes in Argentina

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1st Official Post

    Hi All,


    I moved here in December and I "signed up" with Afip (y la municipalidad) and I started paying "taxes" in Argentina. Another expat asked me why, but I figured that if I live here I have to pay taxes here. Do we have to be "monotributistas" if we earn money abroad? What happens if I deposit large amounts of money monthly in my Argentinean account and say nothing?


    An on a similar note, I know that as a US citizen I have to continue declaring taxes in the US regardless of whether I live there or not. Do I actually have to pay in the US? Will they tax me the same amount as if I lived there? Anyone from the US here that can tell me what it's like for them?


    Thank you!

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    • Official Post

    My wife is an accountant and I can check this with her.

    Quote

    Sólo debe inscribirse en AFIP si es residente permanente en términos migratorios o si permanece en el país 12 meses continuados. Si el dinero lo gana en el exterior y NO es residente fiscal en Argentina no paga impuesto a las ganancias en Argentina. Si tiene bienes en Argentina que superan los $ 2.000.000.- paga impuesto Bienes Personales por los bienes en el país. Esto lo paga como NO residente y debe tener un responsable sustituto en el pais.


    Si el dinero que deposita en la cuenta bancaria argentina se transfiere desde el exterior no hay ningún problema. Si el dinero se deposita cash, seguramente le van a preguntar de donde viene o cómo ingresó el dinero al pais. NO lo puede traer en "negro".

    "Sólo debe inscribirse en AFIP si es residente permanente en términos migratorios o si permanece en el país 12 meses continuados. "


    Follow up question: I plan on living here long term so I guess I am a permanent resident... What happens if I live here for 12 months and not pay taxes? Do I start paying then or I have to pay retroactively? What does it entail to be "residente fiscal"?


    Thank you!

    Quote from laurafran

    "Sólo debe inscribirse en AFIP si es residente permanente en términos migratorios o si permanece en el país 12 meses continuados. "


    Follow up question: I plan on living here long term so I guess I am a permanent resident... What happens if I live here for 12 months and not pay taxes? Do I start paying then or I have to pay retroactively? What does it entail to be "residente fiscal"?


    Thank you!

    Will you be self employed?

    laurafran , the local spòrt is to declare as little as possible.


    One of my suppliers gives me an invoice and always asks if I will be declaring the purchase......


    Montributistas get a pittance of a pension and all my friends justify not paying their full full taxes and say , " I have to save for my pension that the government wont pay me."

    • Official Post

    If you work with clients abroad, there is very little incentive to pay taxes in Argentina, hence your friends' comments.


    The monotributista simplified regime is for low income (if you earn in USD) and this varies depending on the exchange rate: you might as well being the year in the highest category (categoría H) and end up being too rich to keep the monotributo. Currently, the highest monotributo is for max 25k USD/year, but this conversion is today-at the current rate and hardly a given!


    In any case, if you leave the money outside, it is taxed. If you bring it inside, it is converted in pesos at the official exchange rate, which alone accounts for a loss of at least 35-40%. Then you are left with pesos and you can convert back to dollar at the official rate max 200 USD per month. Not a great deal.

    Quote from serafina

    The monotributista simplified regime is for low income (if you earn in USD)

    And this varies depending on the exchange rate: you might as well being the year in the highest category (categoría H) and end up being too rich to keep the monotributo. Currently, the highest monotributo is for max 25k USD/year, but this conversion is today-at the current rate and hardly a given!


    In any case, if you leave the money outside, it is taxed. If you bring it inside, it is converted in pesos at the official exchange rate, which alone accounts for a loss of at least 35-40%. Then you are left with pesos and you can convert back to dollar at the official rate max 200 USD per month. Not a great deal.

    Soooo... I would be considered very low income if I lived in the states.


    Every month I deposit the same amount of pesos into the Argentina account. This guarantees that I don't go over the threshold to be a monoatributista. Also, I'm bringing into the country about 50% of what I make in the US (Which again, it's really not a lot)


    My main concern is that, since I live here now, I figured that at some point I would have to explain my income. I believe someone mentioned that staying more that 12 months and being an official resident (or citizen) I may be liable for paying some type of tax. Not to mention that having an "legal Argentinean income" may help when financing to buy a house, a car or getting into other financial situations.


    I'm not counting on my Argentina retirement since I'll have my US retirement and my IRA. However, I don't want to get into a situation, in the long term, when I may be in trouble.


    (Also, what I pay in Monotributo every month is like 30 dollars. Not going to break the bank)


    Oh! And to send myself money through western union is free and I get a better rate than what the bank would give me. Last month it was at 165 pesos per dollar. In case any of you are bringing in money... If you know someone who gives you a better rate, let me know. 😁

    • Official Post

    I don't know if you did this on your own or with the help of a local accountant. You need to invoice customers using the AFIP invoicing system to justify you are earning that much money. Splinter mentioned:


    Quote

    Si el dinero que deposita en la cuenta bancaria argentina se transfiere desde el exterior no hay ningún problema. Si el dinero se deposita cash, seguramente le van a preguntar de donde viene o cómo ingresó el dinero al pais. NO lo puede traer en "negro".

    which seems incompatible with Western Union. I know they give the best rate, but the system is devised to f*** you up, not to provide you a way to make it work profitably.

    Quote from Splinter

    Western Union give you 165? laurafran

    Yes

    Quote from serafina

    I don't know if you did this on your own or with the help of a local accountant. You need to invoice customers using the AFIP invoicing system to justify you are earning that much money. Splinter mentioned:


    which seems incompatible with Western Union. I know they give the best rate, but the system is devised to f*** you up, not to provide you a way to make it work profitably.

    I used an accountant. I do an invoice when I pay myself my monthly "salary". Western Union does a transfer from my US bank into my Argentina bank, there is no cash involved.

    Quote from serafina

    Sounds like a great arrangement, then! My accountant didn't offer this option.

    I'm just not clear as to whether I "should" be paying taxes here, but since it's a small amount I rather be safe. I will be here for the foreseeable future and I don't want them to come knocking, asking me where all this money came from.


    Plus, we're thinking of buying land this year...

    • Official Post
    Quote from laurafran

    "Sólo debe inscribirse en AFIP si es residente permanente en términos migratorios o si permanece en el país 12 meses continuados. "


    Follow up question: I plan on living here long term so I guess I am a permanent resident... What happens if I live here for 12 months and not pay taxes? Do I start paying then or I have to pay retroactively? What does it entail to be "residente fiscal"?


    Thank you!

    Are you all formalised with permanent residency, like with a DNI, CUIT number etc?