Personal Income Tax in Argentina

[emilyr]

It’s not a crime to be an illegal immigrant, but technically speaking, he is taking advantage ---of government services he doesn’t pay for, roads, subsidized transport, you name it, no matter how crappy they may be if he overstays the 6 month tax free ceiling. And so am I if I don’t get this figured out.

I made “foreign income” this year, but I made it working from Argentina. I contacted the IRS as well as my former state of residence. Just because I am a US citizen even if I spent the entire year outside the US, I must pay US taxes as well as to my former state unless I submit paperwork proving my moving to another state or cutting ties with the US. I’m making those payments like an independent contractor.

But then, I ALSO read that if you live more than 6 months in the year in Argentina, you must pay some portion of income tax, even if it is foreign income. But that is credited and deducted from the taxes you owe, right?

So if I pay taxes to Argentina and get proof of that, is that ENOUGH to get credit for that on my US taxes? Does the IRS require any further documentation besides proof of payment? Do you have to have a temporary residence visa in another country?

So how can I do this legally or where can I go to start figuring it out without getting fleeced? Is there info on the AFIP site? I couldn't find it at first google. I won’t owe more than a few hundred, so I am not willing to pay anyone just to get legal. It seems ridiculous I have to work so hard to give someone money! : )

 

[soulskier]

Just remember, along with futbol, drinking mate and waiting in line, not paying taxes is a national past time in Argentina.

 

[emilyr]

haha! I could just tell AFIP I was trying to be more authentically Argentine. : )

 

[soulskier]

haha! I could just tell AFIP I was trying to be more authentically Argentine. : )

You should! They might even give your permanent residency for your effort!

 

[citygirl]

You in fact are exempt from paying fed/state taxes if you were outside of the US for a certain period of time (I believe its 325 days a year. That's up to a salary amount of 89K a year. You still have to file US taxes but you should get a refund from the taxes withheld.

When you file US taxes, you just have to verify you have a foreign residence, etc.

 

[Maru]

city girl:that percentage is correct. No deductions,no refunds, no NOTIN. And sorry I almost forgot...no double taxation treaties.Id highly recommend you to contact an argentinian accountant for this. In case you need one send me a private, I could give u a contact.

 

[French jurist]

I made “foreign income” this year, but I made it working from Argentina. I contacted the IRS as well as my former state of residence. Just because I am a US citizen even if I spent the entire year outside the US, I must pay US taxes as well as to my former state unless I submit paperwork proving my moving to another state or cutting ties with the US. I’m making those payments like an independent contractor.

But then, I ALSO read that if you live more than 6 months in the year in Argentina, you must pay some portion of income tax, even if it is foreign income. But that is credited and deducted from the taxes you owe, right?

So if I pay taxes to Argentina and get proof of that, is that ENOUGH to get credit for that on my US taxes? Does the IRS require any further documentation besides proof of payment? Do you have to have a temporary residence visa in another country?

So how can I do this legally or where can I go to start figuring it out without getting fleeced? Is there info on the AFIP site? I couldn't find it at first google. I won’t owe more than a few hundred, so I am not willing to pay anyone just to get legal. It seems ridiculous I have to work so hard to give someone money! : )

That's a very very important point you mention.

Most of the countries have established convenios or tratados sobre la doble imposicion.
Being treaties, their "legal power" exceed national laws, therefore that's the first thing foreigners should check about.

Searching a bit, I found that such a treaty was signed between the USA & Argentina on may 7 1981 (this treaty is mentionned in this decision http://biblioteca.afip.gob.ar/gateway.dll/Jurisprudencia/Dictamenes/dat/did_t_000046_1995_04_27.xml?fn=document-frame.htm$f=templates$3.0 ).
I couldn't find the text of this treaty but it probably can so if someone finds the link, this would be helpful for US people.

EDIT : The 1981 double taxation treaty has never entered into force, source http://www.deloitte.com/view/en_GX/global/services/tax/93be77fe593b6210VgnVCM100000ba42f00aRCRD.htm

 

[soulskier]

So you can have 89K not taxable in the States and if you partake in the Argie pasttime, some of that not taxable in ARG as well.

People can complain all they want about the Argentine business environment, but there clearly are some advantages of living (and doing business) in Argentina.

 

[citygirl]

Wellllll - I should clarify.That exemption is in effect if you are doing work outside of the US for clients/companies outside the US.

I don't believe that if you locate yourself out of the US but perform work for a US entity - that exemption can be utilized.

I am not an accountant however, its best to talk to a professional when dealing with taxes.

 

[emilyr]

I was doing contract work for a US entity while OUTSIDE the US. When I called the IRS, they told me ANY foreign income or domestic earned while abroad was "taxable" and as long as I'm a US citizen, I'm on the hook for filing and claiming all that income. But I also understood that other taxes I owed outside the US were exempt so that I would not be double taxed.

Plus, I wonder if they have any visa or residency requirements. For example, if I don't have a legal rental contract or property in my name or not a visa precaria for my full time here, would that still work to prove residency for 325 days outside the country?

But my question is when am I TECHNICALLY on the hook for Argentine taxes? What is the threshold of time in the country/income? Is it 6 months as I heard or read somwhere, maybe even on here?