Foreigners (Tourists & Non-Res) Cannot Use Ars For Travel

[John.St]

My accountant has told me that if you are a non-Argentine resident you have to file an AR income tax form and pay AR tax on your world wide income minus tax paid on your income in the other country. The AR income tax is usually much higher than a person would pay in the US so they would have a tax liability in AR. This is compounded by the fact that they have to declare their world wide income in order to qualify for residency in AR so AFIP knows what their income is. Even assuming that they make the minimum required to get their residency that would work out to about an extra $5000 a year AR tax. A person also has to pay a different tax on their world wide assets (if any).

Lets say a person owns an apt house in Thailand worth $1,000,000 and gets income from the apt house. Income tax is applied on your income and world wide asset tax is applied on the $1,000,000……. yearly.

I am afraid you have been misinformed (as so often in Argentina, where every single public "servant", accountant, lawyer, etc. has her or his own interpretation of any law and rule).

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AFIP on Income Tax

According to the Argentine Income Tax Law, Argentine citizens must pay income tax for their global income.
Non-Argentinean residents must pay the tax only for the income obtained in Argentina.

http://www.afip.gob....h/about.asp#tax
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[John.St]

An Argentine Supreme Court ruling says that No human being can be illegal (a person can only be irregular) while their actions can be illegal.

Fallo de Cámara asegura que “ningún ser humano es ilegal”
http://www.cij.gov.a...es-ilegal-.html

 

[2GuysInPM]

An Argentine Supreme Court ruling says that No human being can be illegal (a person can only be irregular) while their actions can be illegal.

Fallo de Cámara asegura que “ningún ser humano es ilegal”
http://www.cij.gov.a...es-ilegal-.html

thx, but the emoticon was just a reaction to someone using the term "illegal" himself, and then stating the incorrectness of the term, to someone else, just a few minutes later.

 

[John.St]

thx, but the emoticon was just a reaction to someone using the term "illegal" himself, and then stating the incorrectness of the term, to someone else, just a few minutes later.

So I noticed (you pointing to Christian's contradiction), but IMO the more who read the actual ruling and - hopefully - save the link, the more can correct misapprehensions.

 

[Bajo_cero2]

thx, but the emoticon was just a reaction to someone using the term "illegal" himself, and then stating the incorrectness of the term, to someone else, just a few minutes later.

I was using the languaje to make emphasis on the bizarre of this thread when I used the word "illegals" while later, i gave a proper legal explanation.

I define bizarre, people complaining because, a) now it is going to be more expensible to do illegal maneuvers to cheat immigration law on the Colonia runs B.) because this administration takes "no sense desicions" (against people who lives voluntary on illegallity) for stoping or decreasing criminality (it is not illegal to sell usd on the black market from time to time, it is a federal crime when there is habituality) c) they can take less advantage on subsidies when they don t even pay taxes making them worth of those subsidies.

 

[shoush]

but isn't the legal currency in argentina pesos? i can understand the internation flights, but buying a perfume, and having to pay in dollars is ridiculous, as well as paying hotels in USD! This is Argentina not the US!
PS: i have have my residency so this will not affect me, but I think its crap for the people that come visit on vacation!

I was using the languaje to make emphasis on the bizarre of this thread when I used the word "illegals" while later, i gave a proper legal explanation.

I define bizarre, people complaining because, a) now it is going to be more expensible to do illegal maneuvers to cheat immigration law on the Colonia runs B.) because this administration takes "no sense desicions" (against people who lives voluntary on illegallity) for stoping or decreasing criminality (it is not illegal to sell usd on the black market from time to time, it is a federal crime when there is habituality) c) they can take less advantage on subsidies when they don t even pay taxes making them worth of those subsidies.

 

[Bajo_cero2]

but isn't the legal currency in argentina pesos? i can understand the internation flights, but buying a perfume, and having to pay in dollars is ridiculous, as well as paying hotels in USD! This is Argentina not the US!
PS: i have have my residency so this will not affect me, but I think its crap for the people that come visit on vacation!

Nowadays you buy your tickets and hotels by orbitz with your credit card. This is a real tourist for CB. They aren t affected and this rules reventa them to fall into illegal actions.
As i pointed before, this new rule seems to be custom made for expats.
The administration is enacting rules where who respect the law wins.

 

[Bajo_cero2]

I m ar Rio now and i pay everything with my credit card.
All the rules regarding avoiding payments in cash looks for avoiding washing money, avoiding tax payments or money from illegal exchange.
Let' s be honest, Nowadays you buy your ticket and hotel at orbitz if you are a real tourist.

 

[TomAtAlki]

I am afraid you have been misinformed (as so often in Argentina, where every single public "servant", accountant, lawyer, etc. has her or his own interpretation of any law and rule).

-----------------------
AFIP on Income Tax

According to the Argentine Income Tax Law, Argentine citizens must pay income tax for their global income.
Non-Argentinean residents must pay the tax only for the income obtained in Argentina.

http://www.afip.gob....h/about.asp#tax
----------------------

Thank you for this. Maybe I need a new accountant. I couldn't quite understand the part about who has to pay tax on personal property. Do you have an opinion on that?

Tom

 

[MikeB12]

I think what Sleuth is saying makes the most sense. This decree came from the central bank. The most important issue for the economy is the reserves. Everyone knows it, and everyone is looking at the numbers every month.

This isn't about going after and screwing over tourists, "permatourists," other non-resident foreigners, its about stopping the bleeding of reserves by any means possible. Almost every economic move the gov't has made of late is with the reserves in mind, from taxing argentine credit cards abroad to trying to settle debts to access more credit, to everything YPF is doing (paying Repsol, increases the prices for natural gas discoveries, deal with Chevron, increasing gas prices at the pump to fund oil exploitation, to Kicillof's reverse contado con liqui strategy.

Now keeping that in mind...

Vacation packages and international travel bought with pesos that were exchanged for dollars/euros/pounds in the informal market by foreigners bleed the central bank of reserves because these transactions must go thru the CB in order to pay off the foreign service providers.

Therefore, regulating international travel purchases makes logical sense. Forcing tourists to use dollars to buy goods/services at local tourist businesses that don't need to get their money out of the country does not make sense, because it is putting no strain on CB reserves. If a tourists pays a local business in cash dollars, the merchant will probably either save the dollars, exchange it on the informal market, or use it for international travel, which does not help the central bank.