Do I need to pay any taxes, if I transfer money to bank account regularly via Bitcoin?

xantrk

Registered
Hi everyone,

Due to my work, I will be in argentina for 2 years and have a temporary DNI.

I would like to open a bank account, which I think I will go with Wilobank to deal with my cash needs, as I get paid in my own country and it is a pain in the back to bring/get cash here.

I would like to buy bitcoin on my home country and withraw to my bank account via a local exchange here in argentina. With that, will I get into any issues regarding tax (income tax or any other form of tax)? Also any recommendations regarding Bitcoin exchanges are also welcome.

Thank you.
 

camel

Registered
I don't know the answer, but I am interested in your experience regarding converting your bitcoin to pesos here. Please post an update once you've done it.

As far as income tax, logically, you are sending money to yourself, so it isn't income. But I'm not a tax person.
 

sts7049

Registered
it has been several months since i checked into this, but i was not able to open an account on any of the local bitcoin exchanges here because i'm not argentina nationality. if you are able to do so report back.
 

elhombresinnombre

Registered
If you are resident in Argentina as you describe then you come within the scope of the tax system. There's a summary of the expat situation on the KPMG site at https://home.kpmg/xx/en/home/insights/2014/04/argentina-thinking-beyond-borders.html I think that a) it's been written less to inform and more to confuse the reader into the willing arms of KPMG and b) I don't think it's that accurate but it will give you a starting point. AFIP's own website may be of help. If your home country has a dual taxation agreement with Argentina then hopefully you won't end up paying two lots of tax on the same income.
 

MilHojas

Registered
With that, will I get into any issues regarding tax (income tax or any other form of tax)?
I think a money transfer by itself is not taxable.

However, if you transfer a significant amount, your bank will send you a letter asking to justify the source of the money. And if you do not comply, they will close your account.
 

xantrk

Registered
As far as income tax, logically, you are sending money to yourself, so it isn't income. But I'm not a tax person.
But, when changin Bitcoin to ARS, there is no way to prove that it was me sending the money. Either the bitcoin exchange or some local person will be seen as sender in terms of bank transaction. I am afraid that would be an issue.
 

xantrk

Registered
it has been several months since i checked into this, but i was not able to open an account on any of the local bitcoin exchanges here because i'm not argentina nationality. if you are able to do so report back.
Will check that with a couple exchanges, but as far as I know there are some global exchanges which support Argentinian bank withdrawals too. Or localbitcoins is a great solution too. But in that case, a local people you have no idea who, will send money to your bank account, which could be a little problematic, I am not sure how to solve this last step.
 

xantrk

Registered
If you are resident in Argentina as you describe then you come within the scope of the tax system. There's a summary of the expat situation on the KPMG site at https://home.kpmg/xx/en/home/insights/2014/04/argentina-thinking-beyond-borders.html I think that a) it's been written less to inform and more to confuse the reader into the willing arms of KPMG and b) I don't think it's that accurate but it will give you a starting point. AFIP's own website may be of help. If your home country has a dual taxation agreement with Argentina then hopefully you won't end up paying two lots of tax on the same income.
Thanks for the information!
So as my wage goes to a local bank in my country, and I moostly use credit card to survive apart from rent and a couple bills, I am not sure if I should pay income tax here after 12 months. Will see about that.

My intention is transfering around 500$ each month via btc, to either an exchange or localbitcoins. In the latter case, a local person sends money to your bank account and you release the bitcoins from an escrow. But could this repeating event may be taxable? Do you have any idea?
 

elhombresinnombre

Registered
Thanks for the information!
So as my wage goes to a local bank in my country, and I moostly use credit card to survive apart from rent and a couple bills, I am not sure if I should pay income tax here after 12 months. Will see about that.
Wherever you live now, whatever you earn, at home or abroad is taxable by your home country. Yes? No?
When you are living in Argentina, whatever you earn in Argentina or from elsewhere (eg your "home" country) is taxable by Argentina. I imagine your home country tax is deducted at source. If your country has a dual taxation treaty with Argentina then you should only pay tax in one country or the other. You may need to get advice about this. It is possible that a department in your employer's firm can give this advice otherwise look for accountants or tax advisors who are familiar with overseas postings etc.


My intention is transfering around 500$ each month via btc, to either an exchange or localbitcoins. In the latter case, a local person sends money to your bank account and you release the bitcoins from an escrow. But could this repeating event may be taxable? Do you have any idea?
Moving money around in itself is not taxable but demonstrating, if asked, that it's not the proceeds of money laundering is the most likely stumbling block. If you can establish a good audit trail as the money moves around, it shouldn't cause any problems - but remember - this is Argentina and anything could happen, so be prepared.
 
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