AFIP will control your expenses in May: from what amounts should your bank report

[steveinbsas]

This thread includes information which individuals who are cosiddring applying for the pension visa in Argentina:

Argentine rules regarding receival of foreign pension

Hi - I am 62 years old and will decide in the next half year or so between either (1) emigrating to Argentina, stop working and let my retirement pension start early, or (2) 'hopping' between the EEC country I currently live and Buenos Aires, and then staying a tax resident in my home country...

baexpats.org

 

[LuckyLuke]

Do you think they don't have all the dots or that they have them and currently only use them in a targeted and selective way? I think it's the latter and masses of data is shared with all manner of entities even if most of the time it's not used. Next time you experience a data based screwup in a bank, a shop, a utility or city or government service, ask yourself if this muddle, this complication has come about because they have too little information about you or too much?

My experience with Argentina's bureaucracy and banking thus far has been tragically, bordering on comically, disorganized thus far. The left hand of it's ministries doesn't seem to know what the right hand is doing. That's not to say that improvements won't be made and I'm certain it will as there is a lag in technology implementation here. Much of the IRS audit system is automated with an algorithmic flagging system, but once flagged a physical agent is required to investigate it afterwards. At the level of movements that most expats are operating they are amongst a huge mass of the populace (i.e. in a sea of flags).

That being said, I've worked in accounting all my life and I have no qualms with paying reasonable taxes. Many people are uneducated with regard to how government budgets work and where "their tax dollars" are going. Payroll taxes down here are low compared to the US. The hoops I see expats jumping through to avoid paying $30 USD a month in taxes seems nonsensical to me. I also think morally it's deeply disrespectful to take advantage of Argentina's existing public infrastructure without making any contributions as a resident.

 

[steveinbsas]

The hoops I see expats jumping through to avoid paying $30 USD a month in taxes seems nonsensical to me.

It would be interesting to know what "hoops" you think expats are jumping through to aviod paying $30 USD per month in taxes. The only one I can think of is offering to pay in cash to get a 10% discount when paying for something, but I refuse to play that game (which means 11% more for the seller and zero for Argentina).

I use a my Argentine credit card to pay for almost everything , including lab work.. Occasionally I pay with my debit card, but that's only when using the vendor or service provider charges more if a credit card is used to pay. I like being able to use the bank's money for at least a month without paying interest.

Paying with either a credit or debit card should mean 21% IVA should be paid to AFIP

I also think morally it's deeply disrespectful to take advantage of Argentina's existing public infrastructure without making any contributions as a resident.

I agree and calculate my tax rate is actually greater than 21% of my income as I also pay a number of additional taxes every time I buy nafta or pay the electric bill. I also pay property taxes.

The bottom line: when, as I often do, I spend my entire monthly income in Argentina, and I don't buy any used items on Mercado Libre, I will pay at least 21% USD in VAT taxes alone, but I am complaining about them or trying to avoid paying them.