Expat AFIP taxes

[Shane]

Looking at filing taxes with Afip. US expat earning income remote from an outside country depositing into US Bank account. Anyone with similar experience that can confirm 35% of total earned income is what's due in the top tax bracket here?

 

[lunar]

Looking at filing taxes with Afip. US expat earning income remote from an outside country depositing into US Bank account. Anyone with similar experience that can confirm 35% of total earned income is what's due in the top tax bracket here?

This does not rectify your relationship with AFIP. Search this forum for "pesification".

Expat Options to move to Argentina

Hey guys, nice to meet y'all...possible new expat for BA in a couple of months. I'm in the midst of seeing if my company will move me down there from the US, had a few questions hopefully someone can help me with. I work for a small UK company with a US local entity, which is for whom I...

baexpats.org

 

[Quilombo]

Looking at filing taxes with Afip. US expat earning income remote from an outside country depositing into US Bank account. Anyone with similar experience that can confirm 35% of total earned income is what's due in the top tax bracket here?

Nobody can confirm this as that's not how it works.

The following is the quick and dirty of what is legally required, but NOT what happens in reality.

If you want further, in depth details please reach out to an Argentine accountant and/or lawyer.
You'd be breaking several laws by not following these rules, something tens of thousands of Argentines
and resident foreigners are already doing to get the real value of their dollars, but it's still a crime.

(The following assumes you are a tax resident of Argentina):

- You can earn up to $28,870.59 USD/year ($5,650,236.51 ARS) as a monotributo (Category H, the max for remote work)
- If you earn more than this, you must pay ganancias, and you are not able to remain as a monotributo. You WILL need an accountant
- In both cases, you issue a Factura E from AFIP for the export of services to the client(s) you have abroad
- You have 5 days from when the money is credited to your account in the US to transfer it here to Argentina
- The first $12,000 USD is not subject to pesification; there is a bill in congress to raise this to $30K, it has not passed yet
- Any amount in excess of $12,000 USD now, or possibly 30K in the future must be pesified at the BCRA exchange rate

Like I said, nobody does this, but in doing so they are breaking several laws. If you're going to be a tax resident of Argentina and
earn more than 12K now, or possibly 30K in the future you will need an accountant, and to make the decision as to how comfortable
you are in evading taxes, which is a crime.

I make no judgement either way, the "leaders" of Argentina and their kids (Maximo's sweetheart deal with AFIP for example) evade taxes
all the time at amounts in the millions, I'm just saying what the laws are v.s. what happens in reality.

 

[nikad]

I suggest you get yourself a good local accountant.

 

[Brian_is_here]

No one pays their taxes in Argentina. Everyone works off the books or pays people off the books.

Now, how comfortable with that is a risk question for you. An accountant can help you become .. compliant with Argentina taxes… but I’m not sure how many do..

 

[AxelM]

Nobody can confirm this as that's not how it works.

The following is the quick and dirty of what is legally required, but NOT what happens in reality.

If you want further, in depth details please reach out to an Argentine accountant and/or lawyer.
You'd be breaking several laws by not following these rules, something tens of thousands of Argentines
and resident foreigners are already doing to get the real value of their dollars, but it's still a crime.

(The following assumes you are a tax resident of Argentina):

- You can earn up to $28,870.59 USD/year ($5,650,236.51 ARS) as a monotributo (Category H, the max for remote work)
- If you earn more than this, you must pay ganancias, and you are not able to remain as a monotributo. You WILL need an accountant
- In both cases, you issue a Factura E from AFIP for the export of services to the client(s) you have abroad
- You have 5 days from when the money is credited to your account in the US to transfer it here to Argentina
- The first $12,000 USD is not subject to pesification; there is a bill in congress to raise this to $30K, it has not passed yet
- Any amount in excess of $12,000 USD now, or possibly 30K in the future must be pesified at the BCRA exchange rate

Like I said, nobody does this, but in doing so they are breaking several laws. If you're going to be a tax resident of Argentina and
earn more than 12K now, or possibly 30K in the future you will need an accountant, and to make the decision as to how comfortable
you are in evading taxes, which is a crime.

I make no judgement either way, the "leaders" of Argentina and their kids (Maximo's sweetheart deal with AFIP for example) evade taxes
all the time at amounts in the millions, I'm just saying what the laws are v.s. what happens in reality.

Thank you for this, valuable info. Wanted to ask another question:

If you're a permanent resident in Argentina, work as a freelancer for a U.S. company and receive payment in a U.S. bank account, and simply Western Union yourself a set amount monthly (sent to you via a family member abroad) what is your AFIP tax scenario?

 

[Shane]

Thank you for this, valuable info. Wanted to ask another question:

If you're a permanent resident in Argentina, work as a freelancer for a U.S. company and receive payment in a U.S. bank account, and simply Western Union yourself a set amount monthly (sent to you via a family member abroad) what is your AFIP tax scenario?

What I understand is don't get caught. You must pesify all income as an Argentine resident at the official rate, and likely, depending on your income at that rate, pay 35% taxes, on top of still being a tax subject of the US, thus making it pointless to live here.

 

[SanTelmoForever]

What I understand is don't get caught. You must pesify all income as an Argentine resident at the official rate, and likely, depending on your income at that rate, pay 35% taxes, on top of still being a tax subject of the US, thus making it pointless to live here.

You wouldn't pay US income taxes on the first US$120,000 in 2023.

 

[Quilombo]

Thank you for this, valuable info. Wanted to ask another question:

If you're a permanent resident in Argentina, work as a freelancer for a U.S. company and receive payment in a U.S. bank account, and simply Western Union yourself a set amount monthly (sent to you via a family member abroad) what is your AFIP tax scenario?

Officially/legally: at the very minimum a tax evader, violator of MULC regulations, and guilty in theory of a form of money laundering.

In practical terms, it depends. How big are you going to be living here? How much money do you plan on spending? This is why I always
encourage people considering doing this to speak with an Argentine accountant. There are tens of thousands of Argentines doing what you're
describing (minus WU, most use a digital cave) and they don't get caught, so it's doable, but it requires being comfortable with a certain level of
risk that only you can decide.

What I understand is don't get caught. You must pesify all income as an Argentine resident at the official rate, and likely, depending on your income at that rate, pay 35% taxes, on top of still being a tax subject of the US, thus making it pointless to live here.

You wouldn't pay US income taxes on the first US$120,000 in 2023.

If you're making more than 120K/year you shouldn't be asking randoms on an expat forum, this is almost $48,000,000 ARS/year and the kind of income AFIP goes after with gusto. I'm certain there are people here doing and earning this, but it requires a rather skilled accountant to cook the books and "blanquear" your money so you can use it here.

 

[sts7049]

You wouldn't pay US income taxes on the first US$120,000 in 2023.

huh? are you mixing up the foreign earned income exclusion?