Permanent Resident And Taxes In Arg

[brandon]

I'm considering permanent residency now that I have a Argentinean son and am researching the tax requirements.
I've read a bunch of posts here plus some good info from E&Y:
http://www.ey.com/GL...2014/TGE-AR.xml
I work remotely for US company, paid to a US bank account.
I've confirmed with a local accountant that I owe tax on foreign income and can take a credit for some taxes paid in the US. Worse case here is the 35% tax level, example: if I pay 20% in the US, I'd still owe the 15% difference here.
Looking for some practical experiences: (PM is you prefer)
Anyone with foreign income have experience with AFIP?
How do demonstrate your foreign income and foreign taxes paid?
Do they come looking for you if you don't pay each year?
Is there a fine if you report no income?

All of this mess makes permatourist look better and better.
Or work for monedas en el semaforo...

Thanks,
Brandon

 

[mikic007]

Why would you like to share your earnings outside with afip? Is there a way they can catch you?

 

[ben]

For residency they don't ask you a thing about your income. Citizenship is another story.

Technically you owe the same taxes whether you're a permatourist (pseudotourist in government parlance) or legal resident. You become liable to local taxes upon being present for 183 days of the year here, legally or not. There is also the same awareness on the part of AFIP about your foreign income (read: none) whether you're here legally or not.

 

[citygirl]

I assume you know (OP) that as a resident of Arg, you are exempt from paying income tax in the US on your first 100K of income even if you are paid in USD into a US account while working for a US company. You still have medicare/soc taxes on that first 100K but not the income. Obviously that is a huge savings.

As far as Arg - the onus is on you to go to AFIP and declare that income. Lots of people don't chose to do that and AFIP really doesn't have any way of knowing about your US income. I've never heard of AFIP coming after anyone for not declaring income.

 

[brandon]

For residency they don't ask you a thing about your income. Citizenship is another story.

Glad to hear that about residency,
What do they ask you when you have citizenship?

I assume you know (OP) that as a resident of Arg, you are exempt from paying income tax in the US on your first 100K of income even if you are paid in USD into a US account while working for a US company. You still have medicare/soc taxes on that first 100K but not the income. Obviously that is a huge savings.

Citygirl- I didn't know that and wash't able to find anything on the IRS site. I do see an exemption for foreign earned income, but that's not the case.
http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion
Do you have any more details?
Thanks all for the responses.

 

[citygirl]

This may be of interest (directly from IRS):
The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a foreign country. Where or how you are paid has no effect on the source of the income. For example, income you receive for work done in France is income from a foreign source even if the income is paid directly to your bank account in the United States and your employer is located in New York City.
I would suggest you get in contact with a good tax specialist

 

[hannstew]

I assume you know (OP) that as a resident of Arg, you are exempt from paying income tax in the US on your first 100K of income even if you are paid in USD into a US account while working for a US company. You still have medicare/soc taxes on that first 100K but not the income. Obviously that is a huge savings.

As far as Arg - the onus is on you to go to AFIP and declare that income. Lots of people don't chose to do that and AFIP really doesn't have any way of knowing about your US income. I've never heard of AFIP coming after anyone for not declaring income.

I know someone that lives by this method. This is correct, also you would file taxes yearly in the US.