Salary, Banking, Payment, Taxes, etc.

[zzziah]

Hi,

I'm going to be moving to Buenos Aires and working for an Argentinian company who is sponsoring me. I'm trying to figure out the legal payment & taxation, and also how I can receive the salary.

First, I'm a U.S. Citizen, although I haven't been resident in the U.S. for several years (I've been in the UK).

Second, the company is sponsoring me, so they'll be getting me a visa. They have assured me that I will not be responsible for any Argentinian taxes - although I'm not sure how that can possibly be.

They have asked if I can invoice them from the US or UK in order to receive my salary. Is that normal?

Should I instead ask to have my salary paid to me in an Argentinian bank account (preferably in US Dollars) and be taxed as a local there? Is it very hard to set up a bank account so that my employer could pay me in this way?

If I instead am paid either into a UK or US bank account, how does that work in terms of taxes, since I know I'm still responsible for paying US taxes as a US citizen. Would I need to start my own company (perhaps a sole proprietorship) in the US or UK in order to invoice this Argentinian company?

Basically just trying to make sense of what my options are for working and receiving salary and paying taxes legally. In the UK it was very simple as I was paid, taxed, etc. as a local - however it seems that is much more difficult in Argentina.

If anyone has a recommendation for a tax profesional who understands this all and is familiar with this situation (preferably who also speaks English), please let me know.

Thanks for any information!

 

[nikad]

If you have to invoice the company, you are not being employed. Legally salaries in Argentina must be paid in pesos and it is mandatory that they get a savings account for you to get paid. I do not know the details of your agreement but this is the general rule. I am sure some other forum members wil be able to give you some more insight.

 

[steveinbsas]

Your post raises a number of questions.

Are you sure the company is going to sponsor you for a work visa?

Are you going to be an employee who will be paid in Argentina or a contract worker paid in the USA?

Either way, I agree that it's hard to believe you would not be responsible for paying taxes on your earnings, but as a contract worker it might be possible for them to pay you without withholding taxes, but if you are living and working in Argentina, as a foreigner you still need a work visa.

If you are going to be paid outside of Argentina you won't be "legally" employed in Argentina and I've never heard of anyone being paid en blanco (legally) in dollars (or any currency other than pesos) in Argentina.

Also, how long are you planning to work in Argentina? In order to renew a work visa you will be asked to provide pay stubs.

 

[jb5]

Is this a company that provides services to foreign clients or is their business confined to Argentina?

 

[jenh]

If they are truly sponsoring you, part of their sponsorship letter has to include details of your salary, etc. If they have a US affiliate company/subsidiary, you could technically be employed by them in the US and then work in Argentina on an intercompany transfer, or as "business trips" if you came and went every 3 months or so, but if they are employing you, you should be getting a salary in pesos and paying taxes. It sounds like what they are doing is trying to set it up so you work for them but they avoid the taxes.

With that said, it is seriously in your best interest to be paid in dollars rather than pesos because of inflation and potential currency fluctuation. At the same time, it might not be easy to set up bank accounts in pesos or dollars in Argentina without proof of salary, numbers such as a CUIT from your employer, and a proper work visa. Even if you have something like HSBC premier which helps you set up accounts in other countries, Argentina makes it very tough to do without every piece of paperwork. You can live being paid in dollars though through a US account as long as you are wise about taking out pesos from cash machines (and the fees if you don't have a fee-free bank), using credit cards when you can, etc.

 

[Davidglen77]

Just to give some more clarification, there is not really a "work visa", you will be granted a residency visa under the "trabajador migrante" program.
Your salary must be paid in pesos and taxes on it will have to be paid by your employer and if you earn more than de $5782 pesos per month if you are single, OR more than $7998 pesos and you are married YOU will paying about 20% of your salary in taxes. If it's less than those amounts (and I can't imagine it will be) then you will pay 14% in taxes on your gross salary. Good luck.

 

[jenh]

Steve, you can open a bank account with a work visa and a CUIT/CUIL. A DNI is not needed, although it is helpful. Not every person with a work visa gets a DNI (and the application to get one can talk a while... longer than someone may want to wait without a bank account.

I have opened accounts at Citi and HSBC in pesos and dollars without a DNI.

 

[jenh]

And to reply to David's post above, there are different types of work visas in various categories and for various durations. Also, some expat workers are paid via the company in their home country and home currency, and then may not be subject to Argentine taxes (or these may be covered by your company as tax relief).

The best resource to talk to is an HR person in the company and/or people at the consulate for Argentina where you are living. I would say that it is not worth the trouble though to accept a job working in Argentina with this company if you are not getting real sponsorship for a work visa and a lot of support with the paperwork (renting a place, doing taxes if needed, opening bank accounts). If the company is bringing you there to work, they should promise to help you do some of these things, as they are not at all easy to get done without a local who knows how the processes (if you can even call them that) work.

 

[zzziah]

Thanks for all this great information. It sounds like I need to find out what specific type of visa my prospective employer will be providing.

In this particular case, the company has both an Argentinian arm and a Spanish arm. As far as I know, currently they are only employing citizens of Argentina and Spain, so I'll be an exception for them and the first time they've had to deal with the US.

They've asked me if it's possible to invoice them from the UK, presumably because it's easier for them to deal with an EU country via their Spanish arm, and possibly also for tax relief on their end.

They have already agreed to helping me find an apartment, and seem keen to have their staff help me with setting up in Buenos Aires, however I'm not sure exactly what that will entail. It sounds like I'll need to ask if the documentation they're providing will be enough to open a bank account in Argentina.

How do other US Expats deal with living for long periods of time in Argentina if they're invoicing for their work from a non-Argentinian company? If I invoice from my US company (a sole proprietorship), will that get around having to pay Argentinian taxes? Obviously, I'd be responsible for paying US taxes.

Oh, and I'll be working with them for 12-14 months.

Thanks

 

[zzziah]

Oh, and I already have applied for a Schwab account in the US so I can get money out of the ATM fee-free. Other posts said that was what many people did to get around not having an Argentinian bank account.