wongjoh
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- Oct 12, 2013
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While reading this forum on tax-related issues, I found posts from seemingly well-researched folks (e.g., bajo_cero and others) that contradicted what my local lawyer and accountant said to me (which btw also contradicted themselves), so I decided to set the record straight for myself at least.
Now, I'd like to share what I found in case it is helpful to others, and of course, if I made a mistake to be duly corrected.
Info below is from KPMG, which I think it's a more official source (at least more than my local lawyer/accountant/any baexpats opinion)
On Income Taxes
https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/thinking-beyond-borders/documents/argentina.pdf
"Individuals are considered to be resident in Argentina for the following reasons. • They are of Argentinean nationality, whether by birth or naturalization, except for those individuals who have lost their residence status; or • They are foreign individuals who are not residents for immigration purposes but have spent more than 12 months in Argentina, or foreign individuals with permanent residence for immigration purposes, or those who have been in the country for more than five years ... The 1998 law also established a new category of individuals who are considered to be nonresidents present in Argentina on a permanent basis. In this sense, foreign individuals whose presence in Argentina is based on the grounds of employment that is duly accredited and requires their permanency in Argentina for a period not exceeding five years with a temporary visa are considered to be nonresidents. The same treatment applies to family members who accompany them. The general rule is that people who are residents of Argentina are assessable on their worldwide income. Nonresidents are generally assessable on income derived directly or indirectly from sources in Argentina."
On Wealth (Asset) Taxes
https://home.kpmg.com/xx/en/home/insights/2011/12/other-taxes-levies_2014-12-26-10-48-12.html
"The wealth tax is levied on the worldwide assets that individuals domiciled in Argentina hold at the end of the year. Tax rates vary from 0.5 percent to 1.25 percent. If the total amount of assets, valued according to the Wealth Tax Law, does not surpass the amount of ARS305,000, no wealth tax will apply. Foreign individuals whose presence in Argentina is based on an employment relationship duly proved and which requires their permanency in Argentina for a period not exceeding five years, are subject to this tax only on assets located in the country, valued according to the law."
==
This means that for temporary residents for employment purposes with < 5 years => only liable for income from Argentine sources (i.e., not worldwide income) and Argentine assets (i.e., not foreign assets). This also means that temporary residents have a financial disincentive to become permanent residents earlier than the 5-year threshold.
Of course, if anyone can point to other credible, contradictory sources, please post here to discuss and help set the record straight.
Now, I'd like to share what I found in case it is helpful to others, and of course, if I made a mistake to be duly corrected.
Info below is from KPMG, which I think it's a more official source (at least more than my local lawyer/accountant/any baexpats opinion)
On Income Taxes
https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/thinking-beyond-borders/documents/argentina.pdf
"Individuals are considered to be resident in Argentina for the following reasons. • They are of Argentinean nationality, whether by birth or naturalization, except for those individuals who have lost their residence status; or • They are foreign individuals who are not residents for immigration purposes but have spent more than 12 months in Argentina, or foreign individuals with permanent residence for immigration purposes, or those who have been in the country for more than five years ... The 1998 law also established a new category of individuals who are considered to be nonresidents present in Argentina on a permanent basis. In this sense, foreign individuals whose presence in Argentina is based on the grounds of employment that is duly accredited and requires their permanency in Argentina for a period not exceeding five years with a temporary visa are considered to be nonresidents. The same treatment applies to family members who accompany them. The general rule is that people who are residents of Argentina are assessable on their worldwide income. Nonresidents are generally assessable on income derived directly or indirectly from sources in Argentina."
On Wealth (Asset) Taxes
https://home.kpmg.com/xx/en/home/insights/2011/12/other-taxes-levies_2014-12-26-10-48-12.html
"The wealth tax is levied on the worldwide assets that individuals domiciled in Argentina hold at the end of the year. Tax rates vary from 0.5 percent to 1.25 percent. If the total amount of assets, valued according to the Wealth Tax Law, does not surpass the amount of ARS305,000, no wealth tax will apply. Foreign individuals whose presence in Argentina is based on an employment relationship duly proved and which requires their permanency in Argentina for a period not exceeding five years, are subject to this tax only on assets located in the country, valued according to the law."
==
This means that for temporary residents for employment purposes with < 5 years => only liable for income from Argentine sources (i.e., not worldwide income) and Argentine assets (i.e., not foreign assets). This also means that temporary residents have a financial disincentive to become permanent residents earlier than the 5-year threshold.
Of course, if anyone can point to other credible, contradictory sources, please post here to discuss and help set the record straight.
