Do banks ask for your ssn?

[Brian_is_here]

There is a tax information exchange treaty between the US and Argentina from 2016. https://home.treasury.gov/policy-issues/tax-policy/tax-information-exchange-agreements-tieas

I'm not sure what this means in practicality.

Like this smells like "if you do some thing really stupid, they gonna get ya, but just keep your head low and don't bring too much attention to yourself".

 

[steveinbsas]

Not so much the government but I don't like to add new things to further complicate my tax return. I'd rather pretend like an Argentine bank account with a couple hundred thousand pesos in it didn't exist, as far as reporting and all that fun stuff.

"A couple hundred thousdand pesos in an Argentine bank account" does not necessairly have to be reported on your US tax return.

It all depends on the source of the funds. If you are sending the money to yourself from the US, it won't be an issue.

If you are making the money in Argentina (from the busines you plan to start) you will probably have to report it on your US tax return.

PS: I currently send about $100.000 pesos per month from my US bank account to my Argentine bank account, and I don't report it to the IRS. Even if I sent the equvalent of $200.000 pesos per month, that would not change.

 

[Cordoba]

There is a tax information exchange treaty between the US and Argentina from 2016. https://home.treasury.gov/policy-issues/tax-policy/tax-information-exchange-agreements-tieas

I'm not sure what this means in practicality.

Like this smells like "if you do some thing really stupid, they gonna get ya, but just keep your head low and don't bring too much attention to yourself".

Thanks for the link. Learned something new.

 

[SecretShopper]

"A couple hundred thousdand pesos in an Argentine bank account" does not necessairly have to be reported on your US tax return.

It all depends on the source of the funds. If you are sending the money to yourself from the US, it won't be an issue.

If you are making the money in Argentina (from the busines you plan to start) you will probably have to report it on your US tax return.

PS: I currently send about $100.000 pesos per month from my US bank account to my Argentine bank account, and I don't report it to the IRS. Even if I sent the equvalent of $200.000 pesos per month, that would not change.

It's practically what you're doing. Sending money from the US to just spend. I do intend to still look into the business but I won't worry about that until I actually do it.. so at this point today I was thinking more in terms of random temp resident with no Argentine income.

If the business venture gets off the ground that obviously changes everything.

 

[Quilombo]

I think for now your attention should be paid to AFIP, not the IRS, since Argentina will become your fiscal residence. I assume the money you have in the US was acquired legally, it's AFIP that is going to be (potentially) interested in what the source of these funds are. However, as long as you send said funds to yourself via Western Union/Xoom and not P2P crypto you shouldn't get any questions from AFIP (aside from the initial from you send in after 3 or more transfers), at least that's most people's experience here it seems, my husband's as well with me sending him money.

If your business starts making money here, well, that's another question, and best suited for an international tax attorney.

 

[Cordoba]

I think for now your attention should be paid to AFIP, not the IRS, since Argentina will become your fiscal residence. I assume the money you have in the US was acquired legally, it's AFIP that is going to be (potentially) interested in what the source of these funds are. However, as long as you send said funds to yourself via Western Union/Xoom and not P2P crypto you shouldn't get any questions from AFIP (aside from the initial from you send in after 3 or more transfers), at least that's most people's experience here it seems, my husband's as well with me sending him money.

If your business starts making money here, well, that's another question, and best suited for an international tax attorney.

All the wealthy immigrants and even returning Argentines I know seem to purchase vast farms/farmland when making it their fiscal residence. I thought it was fulfilling a farmer's dream but they all rent them and keep their actual residence in the towns. Must be some sort of loophole because so many liquidated their inheritance/investments/properties abroad when making the permanent move.

 

[steveinbsas]

I think for now your attention should be paid to AFIP, not the IRS, since Argentina will become your fiscal residence. I assume the money you have in the US was acquired legally, it's AFIP that is going to be (potentially) interested in what the source of these funds are.

If my information is correct, most temporary residents do not become "tax residents" until they have been in Argentina for a year (perhaps after they renew their temporary residency for the first time), but I don't think this applies to those with temporary residency as a student. So, if this is true, as long as he has temporary residency as a student, SecretShopper "shouldn't" have any tax liability for his foreign income.

However, as long as you send said funds to yourself via Western Union/Xoom and not P2P crypto you shouldn't get any questions from AFIP (aside from the initial from you send in after 3 or more transfers), at least that's most people's experience here it seems, my husband's as well with me sending him money.

Recently, one member from the US (with the visa pensionado) has reported that 5% of the $213.000 ARS he sends by Western Union each month (Social Security payments) is being withheld/retained by "the government" (but he did not specify it was AFIP).

$213.000 ARS is $43.000 more than what I understand is the current monthly threshold ($170.000?) to pay income tax in Argentina. The (approx) $10K that is being retianed is 5% of the total deposit , but it is also about 20% of the overage that would/might be subject to the income tax.

I don't know what the tax rate is on $43.000 ARS per month, but if it's about 20%, the $10K per month would fit the equation.

 

[lunar]

Recently, one member from the US (with the visa pensionado) has reported that 5% of the $213.000 ARS he sends by Western Union each month (Social Security payments) is being withheld/retained by "the government" (but he did not specify it was AFIP).

This most likely does not have anything to do with the USA. This sircreb thing is a local system of tax retention. Probably the account in question is used for a business that reports less sales than total amount of deposits to its bank account and this triggers a special treatment.

This is probably not applicable to a normal person with a regular savings account. So, I wouldn't make generalizations based on a single incident.

 

[steveinbsas]

This most likely does not have anything to do with the USA. This sircreb thing is a local system of tax retention. Probably the account in question is used for a business that reports less sales than total amount of deposits to its bank account and this triggers a special treatment.

This is probably not applicable to a normal person with a regular savings account. So, I wouldn't make generalizations based on a single incident.

As I wrote in my post, Studiodio is having five percent retianed on his monthly deposits of about $200.000 ARS. It appears that they are the only deposits he makes and the source of the income is the Social Security Admn. of the USA, but I never thought what is happening actually has anything to do with the USA, except for the fact that's where the money he is depositing to his account comes from.

Studiodio didnot indicate that he has any kind of business, and if he doesn't, he's never reported any sales. I imagine that if, like me, he has a regular savings account, his monthly Sandanter Rio statements show the source of the funds deposited to his account is family assistance sent through Western Union. If he had to, I'm sure he could provide his US bank statements showing the motnhly deposits from the US Social Security Administration to prov the source of the funds.

I have never had any percentage of my transfers retained by my Santander Rio branch. The 5% may indeed be a local tax, as you indicate. but I wonder how it would apply to him if he does not operate any kind of business or has ever reported any business income. I would like to know more about hiis situation in case it happens to others so we will have an official explaination ready.

Perhaps he is being charged this tax because of a mistake, but it has happened to him five times and will probably continue to happen if he doen't actually question the validity of the tax being applied to him. I would question my bank if this ever happened to me and I wouldn't settle for 5% less because I was already getting a "damn good rate" (which it is) from Western Union. I live over ten kilometers from the closest Western Union agency, but as an economist (aka: economizer), I would certianly make the trip not to lose five percent each time I make a transfer.

And, like Studiodio, I would not have to wait in line at a Western Union Agency to get the ARS.

(If there was actuallly a line).

Studiodio's post can be found on the second page of the Banking question thread:

i have been sending 1000 dollars converted to pesos via western union to my santander bank in cordoba for years now. about 5 months ago, i noticed that 5 percent was deducted right after pesos were deposited each month
Regimen de recaudacion sircreb z

Responsable:20211385376 / 5,00% sobre $213.500,00

i asked the bank about this and they said it was a tax and i could request a review. this is the amount i receive per month from SSI. <partly out of guilt over taking advantage of argentina´¨s financial problems, i have decided to let it be. with 5 percent deduction i am still getting a damn good rate without hassle of getting pesos directly from western union outlet.

 

[lunar]

Perhaps he is being charged this tax because of a mistake, but it has happened to him five times ...

Or perhaps somebody makes regular transfers to somebody else's business account and it has some unusual consequences.

If @studiodio decides to clarify it at some point, I would be happy to listen. Otherwise, we are just making speculations about the situation we don't really understand.