Occasional Work

[Girino]

I wanted to know if any of you has had any experience with occasional work in Argentina. Should I open a monotributo even if it is an occasional work? I was asked to teach a course (2 classes, 5 hours in total) at a local company. It is about learning to use a software, so after these 5 hours, that will be.

It is my understanding that monotributo has a monthly contribution even if you don't work, so it looks pointless to open monotributo just for a one-day of work. Maybe there is a threshold under which no declaration is due?

 

[Dada]

Well, not sure but the law probably states you should.
The question is, are you really willing to go through all the legal hassle because of just 5 hours?

 

[Davidglen77]

The lowest level monotributo costs about $500 per month, and must be paid whether you work or not. For just a few occasional hours of work, I wouldn't bother...

 

[bdk1]

There used to be something called "monotributo eventual" which was precisely for cases like yours. But they got rid of it during the last monotributo reform. So yeah, you would need to register and pay at least the minimum tax on a monthly basis. Can't you just do it under the table, or ask someone who has monotributo to issue an invoice for you? (this is also a very common practice).

 

[Girino]

There used to be something called "monotributo eventual" which was precisely for cases like yours. But they got rid of it during the last monotributo reform. So yeah, you would need to register and pay at least the minimum tax on a monthly basis. Can't you just do it under the table, or ask someone who has monotributo to issue an invoice for you? (this is also a very common practice).

We'll see how things turn out. I have been still working as a US resident and I thought about opening a monotributo here for 2016 and closing my business in the US, however with the cash limitations there are here, it is really pointless. To get the money down here I'd lose 30% of the money (due to the currency exchange), with savings worth nothing (due to inflation), to have it deposited in a bank account I have to show up at the bank with a paper invoice... Just more work for less money. No thanks!

 

[r2d2]

Monotributo is actually not that difficult to setup and maintain. Once you have your "Clave Fiscal" obtained from the local AFIP office you can do all the AFIP related rest on their website including creating/printing official invoices.
Once a month you pay the fee which includes tax, social security, health plan. No monthly declarations needed. Just three times a year you need to check if you are still in the same category (and switch to another one if necessary). Thats all. Also your Monotributo payment receipts serve as a proof of income. For example if you want to get a local credit card.
Also check if you need to pay taxes to Ingresos Brutos (taxes for the province you live in). If that was the case then you would also need register with them and pay them monthly a small tax. Pretty easy to do.

Regarding receiving money from clients in the US: As far a I know they do not check how the money got onto your bank account. So to "get the money down here" you could still use xoom, ria. No need to show any invoices. You just let your clients deposit the money onto your account in the US and then send the money to yourself. Probably not 100% correct to do it that way but it worked so far for me. Anyway many are expecting a devaluation soonish. So hopefully no more 30% losses when exchanging the "official way".

 

[Girino]

Regarding receiving money from clients in the US: As far a I know they do not check how the money got onto your bank account. So to "get the money down here" you could still use xoom, ria. No need to show any invoices. You just let your clients deposit the money onto your account in the US and then send the money to yourself. Probably not 100% correct to do it that way but it worked so far for me. Anyway many are expecting a devaluation soonish. So hopefully no more 30% losses when exchanging the "official way".

What about bringing down cash and depositing it in your bank account? Obviously trying to deposit an amount of cash equal or less than your monotributo tax bracket.

 

[r2d2]

What about bringing down cash and depositing it in your bank account? Obviously trying to deposit an amount of cash equal or less than your monotributo tax bracket.

I have done the cash thing once. But personally I prefer using the transfer services.