Is It Finally Possible To Be A Legal Freelancer?

[steveinbsas]

I think this is in response to the "Let's say that I obtain my residency and open some kind of business registered with afip ...". So the assumption is he has residency, can open monotributo, would not have to charge IVA. And of course this would then apply to clients billed outside Argentina as well. The electronic invoice feature on the AFIP site allows you to specify clients abroad.

But if BaKaZoo is "working for a company in the US" he won't have "clients abroad" to invoice.

Why would he want to create invoices for clients of the company he works for in the USA and declare any of that as income in Argentina?

Based on what he wrote in his first post, it looks like BaKaZoo wants to know if is is now possible to get temporary residency based on being a "freelancer"and (to be precise) if he could get temporary residency in Argentina while being employed and paid by a company in the US.

I believe that short term visas (90 days or less) can be obtained for employees of foreign companies who are temporarily working in Argentina, but as far as I know there is no category of one year temporary residency based on being a "freelancer" living in Argentina. If it is possible to get temporary residency in Argentina (one year at a time) based on being an employee of a foreign company I hope someone will share the details.

BakaZoo should check with a foreign tax specialist to see if he qualifies for the earned income tax exemption if he is out of the USA for more than 330 days of the year but is being paid in the USA. He should also ask about the obligation to pay FICA and the Medicare tax. At least if he is living out of the US for more than 330 days of the year he will not have to be enrolled in a ACA approved health care plan.

Also, as far as I know, temporary residents in Argentina are NOT taxed on their foreign income and even if he obtains temporary residency in in one of the existing categories, why would Bakazoo want to "open some kind of business registered with afip" and pay any tax in Argentina on income earned in the USA (and for which he would not be invoicing the clients directly while working for a US company) by becoming a monotributista?

 

[r2d2]

... even if he got temporary residency in in one of the existing categories, why would he want to pay any tax in Argentina on income earned in the USA (and for which he would not be invoicing the clients directly while working for a US company) by becoming a monotributista?

I am not sure I understand your question. If you live in Argentina (residency) and generate income by providing services to a business in another country - you have to declare that income here in Argentina and pay the taxes. If you already paid taxes for that income abroad and there is a double taxation treaty between the two countries, then you could deduct the taxes paid abroad. But as far as I know there is no treaty between Argentina and the US.

 

[fcoulombe]

thanks everyone for the replies.

I guess I've omitted some of the information.
I would work for a company from the US but receive the money in a bank account in another country (lets say Uruguay) in a bank account registered with an Argentine address.
I use to be an Argentine resident but i no longer am (even though I'm guessing that here like anywhere else, you automatically become a tax resident after living here for 6 months... legal or not). I still do have a bank account... I just don't really use it.

I've already cleared myself of taxes from anywhere since according to everyone... i have no residency and therefore no tax obligation but if you really wanna get down to it, my residency is here in argentina and if i'm to perform some kind of crazyness with my money like buying a house... it most probably will be here. So it is potentially in my advantage to try to figure out how to clean my money here. I'm open to bringing the money in if it stays in dollars otherwise it'll stay in a bank outside of the country and that's all. (I believe it is feasible to pay your taxes on an income received outside of the country)
I can always get married if I really need to but yeah... I'm trying to be careful before tackling this. Until I'm certain that this plan can work... I am indeed better to "just shut up about it".

 

[steveinbsas]

There is an tax exemption of about $95,000 USD for US residents/citizens who earn money abroad and are out of the USA for more than 330 days of the year. This exemption does not depend on a tax treaty.

I don't know of or have even heard of any temporary residents of Argentina who have the visa rentista or pensionado who pay taxes on their foreign income in Argentina. Someone who has temporary residency based on these categories may also have clients outside of Argentina who pay for some type of service, but I've never heard of anyone paying taxes on that "income" in Argentina, either.

That would change if and when they get permanent residency and their income exceeds $15,000 pesos per month (the last threshold in Argentina for income tax that I''m aware of).

 

[r2d2]

There is an tax exemption of about $95,000 USD for US residents/citizens who earn money abroad and are out of the USA for more than 330 days of the year. This exemption does not depend on a tax treaty.

Right. But that has no effect on you tax liability here.

I don't know of or have even heard of any temporary residents of Argentina who have the visa rentista or pensionado who pay taxes on their foreign income in Argentina. Someone who has temporary residency based on these categories may also have clients outside of Argentina who pay for some type of service, but I've never heard of anyone paying taxes on that "income" in Argentina, either.

Well, that you have never heard of it does not mean that you do not have to pay taxes.

That would change if and when they get permanent residency and their income exceeds $15,000 pesos per month (the last threshold in Argentina for income tax that I''m aware of).

Wrong. That is the threshold for employment "en blanco" working for an Argentine employer. Self-employed start paying taxes for much lower income.

 

[fcoulombe]

for the record: I'm not a US citizen.

for the rentista... normally (Canada and Australia seems to work like this. I know it can vary between countries) if you own a property somewhere, that automatically makes you a tax resident of that country and should therefore file your taxes in that country even if you're not physically resident. this is also true if your spouse or children (dependent) are resident of those countries.
"get married, buy a house and get some kids!" <-- this came to me as a whole new meaning once i found out about this

but anyway, I'm actually curious what the Argentine tax laws say about rentista. They might have an exemption?

 

[steveinbsas]

for the rentista... normally (Canada and Australia seems to work like this. I know it can vary between countries) if you own a property somewhere, that automatically makes you a tax resident of that country and should therefore file your taxes in that country even if you're not physically resident.

Owning a property in Argentina does NOT make you a tax resident of Argentina.

The only taxes that "have to" be paid by foreign property owners are the property taxes ABL (in CABA) and ARBA (in Pcia. Bs. As) and the bienes personales tax if the property has a tax valuation of more than $305,000 pesos.

The visa rentista is granted for those who can demonstrate a "stable" and passive monthly income of (currently) at least $8000 pesos. If that is the only income you receive I don't think you will "have to" pay income tax on that amount while you have temporary residency.

You'll have to ask an accountant if the active income being paid to you in another country is subject to taxation while you have temporary residency in Argentina (and spend at least six months of the year in Argentina).

I've read information on other websites by supposed "tax experts" that indicate it isn't.

 

[fcoulombe]

[background=rgb(252, 252, 252)]I've read information on other websites by supposed "tax experts" that indicate it isn't. [/background]

shrugs...
i have to be the only a**hole who wonders around the world telling countries: "take my money!!!"
and all them seems to reply: "no"

 

[steveinbsas]

($15,00) is the threshold for employment "en blanco" working for an Argentine employer. Self-employed start paying taxes for much lower income.

Are individuals who receive income from a pension considered "self-employed?" Has anyone with temporary residency who is NOT working in Argentina ever been asked by AFIP about their foreign income?

Except for one individual who charged friends' airline tickets to his Argentine credit card (to get the points), I haven't heard about anyone who has and when I wanted to know about my own tax status I simply went to AFIP and asked.

While some level of foreign investment or pension income might be taxable in Argentine, mine wasn't.

On a related note: While the current "income" requirement for the visa pensionado is only $8000 pesos, anyone receiving "full" Social Security benefits from the USA would now probably exceed $15,000 pesos per month.

I don't think there is any requirement to show migraciones anything that proves they are paying taxes on that income in Argentina in order for them to renew their temporary residency or change from temporary to permanent residency. If paying taxes on this income is required by law, why isn't migraciones asking for proof of payment.

Since anyone who is "working freelance" in Argentina and being paid in another country cannot qualify for temporary residency based on that income and won't have a DNI as a result, there is simply no reason (and no mechanism) for them to be taxed on that income.

Of course without temporary residency, they "shouldn't" be living in Argentina for more than six months (180 days) of the year.

 

[r2d2]

Are individuals who receive income from a pension considered "self-employed?"

This is about generating income through providing services to businesses abroad. No idea about pensions.

Has anyone with temporary residency who is NOT working in Argentina ever been asked by AFIP about their foreign income?

Come on. They do not go from house to house an ask if you have foreign income (neither temporary, permanent residents nor citizens). With that argumentation nobody should pay taxes.