Expat AFIP taxes

[lunar]

Yes, I know, I asked about "some type of monotributista" because I don't know what else to call it. It seems that I have no options then.

monotributista = "sole proprietor"
(and not an employee)

 

[Quilombo]

Yes, I know, I asked about "some type of monotributista" because I don't know what else to call it. It seems that I have no options then.

Thank you. The thing is that I don't bill anyone, I'm just a regular hourly wage worker.

Some Argentine labor/tax laws haven't been updated since the 19th century (i.e. you resign or fire people via telegram still) so there's some gray areas still, and being a fully remote worker of a foreign company is one of them.

Legally, the onus is on the foreign company to make a legal subdivision in Argentina to be able to have employees here in a "dependency relationship", pay pension contributions, provide insurance, etc. but that's never been enforced that I've heard of, except for companies that already have local entities (i.e. a KPMG worker from NYC being transferred to the CABA office since they already have a presence in both countries) so the government unofficially lets people who would be classified as being in a "dependency relationship" register as monotributistas, when they're technically not, and overlook it.

How you do this is by issuing your company, let's say ABC Inc. a Factura E invoice for $X,XXX.XX dollars each time you get paid, for the amount you're paid, and then transferring the money via SWIFT to your Argentine bank account within 5 days of doing so. Again, I know several people who work remotely and none of them do this, they all work en negro o gris and blanquear the money they need to live each month, still paying some taxes here, but usually not the full amount they should, and never converting at the official exchange rate.

 

[lunar]

I've heard of, except for companies that already have local entities (i.e. a KPMG worker from NYC being transferred to the CABA office since they already have a presence in both countries) so the government unofficially lets people who would be classified as being in a "dependency relationship" register as monotributistas, when they're technically not, and overlook it.

KPMG would never engage in any form of "unofficial" arrangement with any party due to the associated reputational risk.

How you do this is by issuing your company, let's say ABC Inc. a Factura E invoice for $X,XXX.XX dollars each time you get paid, for the amount you're paid, and then transferring the money via SWIFT to your Argentine bank account within 5 days of doing so.

I believe he cannot invoice his own company while he is an employee. He needs to reclassify as a contractor first.

 

[Quilombo]

KPMG would never engage in any form of "unofficial" arrangement with any party due to the associated reputational risk.


I believe he cannot invoice his own company while he is an employee. He needs to reclassify as a contractor first.

Yup, that's why I said they wouldn't do this, and neither would any other company that has a local division since they're already going to be subject to Argentine laws, and I assume based on OP's posts that their employer doesn't have a local Argentine division, but if they did, and they decided to let him do this while paying him abroad, they'd been in trouble legally on multiple fronts.

OP could issue invoices via the AFIP platform, it's the step that has to be done to get a control number for bringing the foreign funds in, and I don't think their employer would do anything with said invoices based on what they've said, especially since they're only of significance here, but the bigger issue is the fact OP likely makes over both $12K and $22K a year, and what will OP do once they hit $12K and $22K respectively? I assume OP won't be interested in getting less than 50¢ on the dollar for as long as the brecha exists, and then paying VAT on top of it once they hit $22K, which is why this is likely all irrelevant anyways as OP will probably end up doing what all the local tech workers do, being en gris so they can have a credit card/obra social/etc.

 

[lunar]

Yup, that's why I said they wouldn't do this, and neither would any other company that has a local division since they're already going to be subject to Argentine laws, and I assume based on OP's posts that their employer doesn't have a local Argentine division, but if they did, and they decided to let him do this while paying him abroad, they'd been in trouble legally on multiple fronts.

OP could issue invoices via the AFIP platform, it's the step that has to be done to get a control number for bringing the foreign funds in, and I don't think their employer would do anything with said invoices based on what they've said, especially since they're only of significance here ...

This would be considered misrepresenting your relationship with the company and creating fake invoices for work for which you have been compensated otherwise. It is not much different from invoicing a non-existent company. Again, a responsible person wouldn't do it

 

[FrankPintor]

As in other Latin American countries I've worked in, there are companies (you'll have to search for them, they're generally accounting companies, sometimes homegrown, sometimes subsidiaries of multinationals) who can employ you with a local contract (for which they have to be on an approved list called RENURE), and bill your foreign employer a monthly amount including a commission (e.g. 5-10%), employer and employee taxes, pensions contributions, your salary, etc. The local company will pay you in Pesos at the official exchange rate. You will then be a local salaried employee, with paid holidays, a twice-yearly bonus, and you will be able to do all of the other legal residents can, e.g. get a DNI, bank account, health insurance, etc.

On the face of it, it's a perfectly normal commercial arrangement between companies transferring an employee to work in Argentina. The problem is receiving your local salary converted to Pesos at the official rate. Getting creative with the amount of the locally declared salary might affect the legality of the arrangement (even if it would be impossible for anyone other than you or your foreign employer to prove), and I can't say anything more about that.

 

[lunar]

On the face of it, it's a perfectly normal commercial arrangement between companies transferring an employee to work in Argentina.

Technically, this should not be referred to as "transferring an employee." He would become employed/contracted by a local company, ending or at least suspending his current employment in the US.