Purchase Of Flight Tickets And Use Of Argentian Cc Abroad

[spiritk]

Hello,
My girlfriend is argentianian and is going to work in barcelona for 2 months as part of rotation from her hospital, and then travel 1 month before coming back to argentina.

A couple of questions:

1) Getting the 35% AFIP tax back from the flight ticket- how should this be done? She's working for a public hospital, but her parents have a private business if its needed for tax redemption. Has this even worked for anyone?

2) Should she get a work visa in spain that would allow her to open a bank account in spain? Would it be better than using the argentinian CC in spain?

3) Can you get the 35% on purchasing with the CC abroad refunded aswell? On everything or just certain things?

Thanks!

 

[ben]

1) This has been discussed on a recent thread. I personally had thought that nobody tries to get the 35% back except large corporations that deduct it from taxes they pay. It turns out that I was mistaken: check that thread for a bunch of people who have indeed done just that. A couple of points, though, regarding your case:

- When the airfare ticket gets issued, the CUIT or CUIL of the purchaser is always provided (normally; as in everything, there are exceptions in this country). The parents can most probably only use the ticket as a deduction against the business taxes if their CUIL (or the business' CUIT, as applicable) is on the ticket. If it's someone else's number on the ticket, only the one whose tax number is on that ticket and who is therefore the purchaser can use the 35% percepcion in the ticket against the tax they owe.

- Notwithstanding that people seem to have done this successfully, the prevailing sentiment is that to ask for the 35% back is to ever-so-slightly piss off the AFIP, and invite scrutiny accordingly.

2) I'm sure it's a good idea to have a local bank account, but if indeed you have from where to recover the 35%, that's a huge reason to use the arg. CC. If you don't plan on claiming the 35%, there's not a huge difference - any discount for cash negates the gain of using the CC.

3) The 35% can be recovered for anything, officially. The official position is that the 35% is in no case a tax, but merely withheld against taxes owed. So if you want to claim it, it can be claimed for everything and anything.

 

[spiritk]

1) This has been discussed on a recent thread. I personally had thought that nobody tries to get the 35% back except large corporations that deduct it from taxes they pay. It turns out that I was mistaken: check that thread for a bunch of people who have indeed done just that. A couple of points, though, regarding your case:

- When the airfare ticket gets issued, the CUIT or CUIL of the purchaser is always provided (normally; as in everything, there are exceptions in this country). The parents can most probably only use the ticket as a deduction against the business taxes if their CUIL (or the business' CUIT, as applicable) is on the ticket. If it's someone else's number on the ticket, only the one whose tax number is on that ticket and who is therefore the purchaser can use the 35% percepcion in the ticket against the tax they owe.

Hi, thanks for your answer! Two questions:
1) Are you able to locate the thread? I found the 'argie rush to europe' but its not very detailing about the 35%.
2) Does it require you to have a business to deduct the taxes, or any employed person can do that against his income tax?

 

[ben]

1) The thread is here.

2) Officially, any person can claim it against income tax if the ticket was issued against his/her CUIL and this number is on the ticket[sup]1[/sup].

However, the general perception[sup]2[/sup] is that practically speaking, there is a big difference between claiming a refund - which is not automatic, takes time, involves plenty of red tape, and just may bring about extra scrutiny - and already owing the tax and deducting the 35% from that.

Again, I've never tried this myself, so I am only conveying the vibes I've gotten from others.

1. I assume you know the difference between CUIL and CUIT; if not, and assuming you are familiar with US terms, it boils down to the difference between SSN and TIN/EIN.
2. It goes without saying that all the above is only AFAIK; as previously noted, others on the other thread give other perspectives.