Repatriation of funds from apt rental?

[TheBlackHand]

So much for people trying to desperately threaten to " tattle " on their landlords to AFIP.

-facepalm

Also, residential property rental inome is not taxed as income as if it were business income or earnings, etc. If you go over a certain amount of rental income you may have to pay "Ingresos Brutos" if the property is in capital federal. Ingresos Brutos is paid to RENTAS not AFIP it goes to the city government NOT AFIP.

 

[ndcj]

Also, residential property rental inome is not taxed as income as if it were business income or earnings, etc. If you go over a certain amount of rental income you may have to pay "Ingresos Brutos" if the property is in capital federal. Ingresos Brutos is paid to RENTAS not AFIP it goes to the city government NOT AFIP. Go to a good accountant or the colegio de contadores and they will explain all of this to you.

This advice is incorrect.

Any rental income for any rental that exceeds $7500 total per year is subject to el impresto a las ganancias. Anyone who tells you otherwise is misinformed.

This is in addition to and unrelated to Ingresos Brutos (turnover tax) that you have to pay to Rentas Ciudad if you receive more than $1200/month in rental income.

Remember, too, that if the monthly rental amount exceeds $1500 or you rent to a company, society, etc, you must issue facturas either as a monotributista or responsable inscripto.

In reality, much of this never happens, but the threat to report your landlord who screws you to AFIP has teeth for exactly this reason. It's one thing to give correct information and then say screw it because no one will catch you, but don't spread misinformation that it's not taxable income.

 

[TheBlackHand]

actually its anything over 8000 pesos a month. But kudos to you for giving them hope.

but the threat to report your landlord who screws you to AFIP has teeth for exactly this reason.

 

[Davidglen77]

This advice is incorrect.
Any rental income for any rental that exceeds $7500 total per year is subject to el impresto a las ganancias. Anyone who tells you otherwise is misinformed.
In reality, much of this never happens, but the threat to report your landlord who screws you to AFIP has teeth for exactly this reason. It's one thing to give correct information and then say screw it because no one will catch you, but don't spread misinformation that it's not taxable income.

The reason I answered the original posting the way I did is because of the following:
1) The poster said "her apartment" not "her apartments" so I doubt she is going to owe ganancias on the rent from one apartment. Plus she didn't say she had other properties, so it's actually her only residence / property.
2) Since it's not a commercial lease or property renting for over $1,500 pesos per month, she doesn't have to pay IVA. Furthermore she didn't say she is responsable inscripto for IVA.
I was not going to name EVERY single possible scenario, I was sticking to her particular scenario. Just like her accountant said, and I will repeat, she doesn´t have to pay any taxes on what she's describing. And the best source of information on this can be gotten directly from AFIP, that is where I always went to get the mistakes made by the accountants corrected.

 

[ben]

In theory you are a resident of Argentina for tax purposes in most circumstances when you spend 183 days of the year here, no matter whether you're a permatourist or legal resident.

Fair enough.

And to be clear, a resident of Argentina (certainly a legal resident) must in theory (declare and) pay tax on any foreign income as well? IOW, any US income that they hear of, they will also demand tax on?

 

[ndcj]

The reason I answered the original posting the way I did is because of the following:
1) The poster said "her apartment" not "her apartments" so I doubt she is going to owe ganancias on the rent from one apartment. Plus she didn't say she had other properties, so it's actually her only residence / property.
2) Since it's not a commercial lease or property renting for over $1,500 pesos per month, she doesn't have to pay IVA. Furthermore she didn't say she is responsable inscripto for IVA.
I was not going to name EVERY single possible scenario, I was sticking to her particular scenario. Just like her accountant said, and I will repeat, she doesn´t have to pay any taxes on what she's describing. And the best source of information on this can be gotten directly from AFIP, that is where I always went to get the mistakes made by the accountants corrected.

I think you're confused about two different concepts. The $8,000 per month is the threshold above which you are obligated to specifically register the contract(s) with AFIP in the "Registro de Operaciones Inmobiliarias", and if the tenant is commercial, they have to withhold a portion of the rent and pay it to AFIP.

IVA doesn't apply to any rental contract for rentals used exclusively for housing, but IVA does apply to rentals used for temporary tourist accommodation. (Decreto 692/98, Art. 38) For this, you need be registered as responsable inscripto or more easily monotributista (but you cannot be a monotributista if you are not resident in the country).

Separate to all this is the impuesto a las ganancias. This is paid on almost all income, both passive and active, both in Argentina as well as outside Argentina if you are a tax resident here.

If you earn more than $7500 per year (including from leasing housing) you need to file a DDJJ and pay income tax. Rental income is "ingresos primera categoria", and are most definitely taxed as income. From this income, you can deduct expenses and overheads just like a business.

If you are not a tax resident, you pay the non-resident income tax rate of 35%. You also pay impuesto a los bienes personales starting at $0 at the higher rate of 1.25%.

This is not to say that there isn't millions of people completely ignoring their obligations, but they are obligations none the less, and some of these things will be very difficult to explain when it comes time to obtain a COTI to sell the property at some point in the future or if some unhappy tenant drops a dime on the original poster to AFIP.

 

[ndcj]

The reason I answered the original posting the way I did is because of the following:
1) The poster said "her apartment" not "her apartments" so I doubt she is going to owe ganancias on the rent from one apartment. Plus she didn't say she had other properties, so it's actually her only residence / property.
2) Since it's not a commercial lease or property renting for over $1,500 pesos per month, she doesn't have to pay IVA. Furthermore she didn't say she is responsable inscripto for IVA.
I was not going to name EVERY single possible scenario, I was sticking to her particular scenario. Just like her accountant said, and I will repeat, she doesn´t have to pay any taxes on what she's describing. And the best source of information on this can be gotten directly from AFIP, that is where I always went to get the mistakes made by the accountants corrected.

The reason I answered the original posting the way I did is because of the following:
1) The poster said "her apartment" not "her apartments" so I doubt she is going to owe ganancias on the rent from one apartment. Plus she didn't say she had other properties, so it's actually her only residence / property.
2) Since it's not a commercial lease or property renting for over $1,500 pesos per month, she doesn't have to pay IVA. Furthermore she didn't say she is responsable inscripto for IVA.
I was not going to name EVERY single possible scenario, I was sticking to her particular scenario. Just like her accountant said, and I will repeat, she doesn´t have to pay any taxes on what she's describing. And the best source of information on this can be gotten directly from AFIP, that is where I always went to get the mistakes made by the accountants corrected.

I think you're confused about two different concepts. The $8,000 per month is the threshold above which you are obligated to specifically register the contract(s) with AFIP in the "Registro de Operaciones Inmobiliarias", and if the tenant is commercial, they have to withhold a portion of the rent and pay it to AFIP.

IVA doesn't apply to any rental contract for rentals used exclusively for housing, but IVA does apply to rentals used for temporary tourist accommodation. (Decreto 692/98, Art. 38) For this, you need be registered as responsable inscripto or more easily monotributista (but you cannot be a monotributista if you are not resident in the country).

Separate to all this is the impuesto a las ganancias. This is paid on almost all income, both passive and active, both in Argentina as well as outside Argentina if you are a tax resident here.

If you earn more than $7500 per year (including from leasing housing) you need to file a DDJJ and pay income tax. Rental income is "ingresos primera categoria", and are most definitely taxed as income. From this income, you can deduct expenses and overheads just like a business.

If you are not a tax resident, you pay the non-resident income tax rate of 35%. You also pay impuesto a los bienes personales starting at $0 at the higher rate of 1.25%.

This is not to say that there isn't millions of people completely ignoring their obligations, but they are obligations none the less, and some of these things will be very difficult to explain when it comes time to obtain a COTI to sell the property at some point in the future or if some unhappy tenant drops a dime on the original poster to AFIP.

 

[ndcj]

Fair enough.

And to be clear, a resident of Argentina (certainly a legal resident) must in theory (declare and) pay tax on any foreign income as well? IOW, any US income that they hear of, they will also demand tax on?

Correct, tax residents of Argentina pay income tax on all foreign source income. However, unlike the US, citizenship doesn't play a part, only your residence for tax purposes.

 

[Davidglen77]

This info is wrong. I typed a detailed explanation of why

Ok, no point in arguing, you have your correct advice and I have mine. Anyway nobody should take advice given on something as important as tax laws on this board. For all official answers they should consult AFIP directly, that is what I do and I have never had a problem personally or with my business.

 

[jimdepalermo]

Based on my experience with a few rental apartments, ndcj covers all the bases except for Ingresos Brutos, which is mentioned elsewhere.

To summarize, each of the following is subject to minimums and maximums, but each probably applies in your case -

• Monotributo for the actual amounts collected. Declared and calculated semi-annually but paid monthly. (This covers your IVA requirements as well.)
• Ingresos brutos to the City, declared semiannually and paid semi-monthly
• Bienes Personales for the value of the personal property, declared and paid annually
• Ganancias declared and paid annually.

In short, yes you need an accountant to do this right.

Good luck!