Statement of Tax Liability in Argentina needed

[jeff8128]

You might find your number is lower now, since the current government has reduced the alicuotas considerably from the 2.25% high of the Fernandez (A) years, and plans to keep reducing them. But, what a future government would do is anybody's guess.

I confess that my tax consultant was AI, so there is a chance of outdated information or just plain hallucination.

I would actually pay for a consultation run some scenarios to have hard numbers and learn about potential remedies - so if anyone has a recommendation...

 

[Alby]

Suggest keep the number crunching simple: the maximum percentage (of your asset value) payable is 1.25% for 2024, dropping to 0.25 for 2027.

Para los períodos siguientes, desde 2024 al 2026, las tablas de alícuotas eliminan el escalón más alto, y las alícuotas quedan comprendidas de esta manera: entre el 0,50% y 1,25% para el año 2024; 0,50% y 1,00% para el año 2025; 0,50% y 0,75% para 2026; y para el año 2027 se aplicará una alícuota proporcional del 0,25%.

Reducción en la imposición sobre bienes personales. Posibilidad de pago anticipado con importantes ahorros. Cuáles son las claves para adherirse - Insights - Andersen en Argentina

Por Cecilia Goldemberg, Managing Partner.

ar.andersen.com

For US tax residents (i.e., no tax treaty), other than not declaring, there are no remedies. I'd wait a couple of years to see whether the current policy and line of travel towards zero looks like it will survive.

 

[jeff8128]

Suggest keep the number crunching simple: the maximum percentage (of your asset value) payable is 1.25% for 2024, dropping to 0.25 for 2027.

Para los períodos siguientes, desde 2024 al 2026, las tablas de alícuotas eliminan el escalón más alto, y las alícuotas quedan comprendidas de esta manera: entre el 0,50% y 1,25% para el año 2024; 0,50% y 1,00% para el año 2025; 0,50% y 0,75% para 2026; y para el año 2027 se aplicará una alícuota proporcional del 0,25%.

Reducción en la imposición sobre bienes personales. Posibilidad de pago anticipado con importantes ahorros. Cuáles son las claves para adherirse - Insights - Andersen en Argentina

Por Cecilia Goldemberg, Managing Partner.

ar.andersen.com

For US tax residents (i.e., no tax treaty), other than not declaring, there are no remedies. I'd wait a couple of years to see whether the current policy and line of travel towards zero looks like it will survive.

Thanks Alby. Big difference between $12,500 and $2500 per 1M USD at 1.25 and 0.25%, respectively. $2500 still adds quickly up but much more tolerable if you really want to make Argentina your home or are an Argentino returning home after many years of building wealth abroad.
Let's hope it does continue dropping to zero.

 

[LuckyLuke]

I can’t afford to become a tax resident of Argentina or Colombia or Spain (except Madrid) because of their Wealth or Equity tax. Taxing INCOME from my US SS, dividends and interests for brokerage, IRA, 403s is one thing, but claiming the right to tax YEARLY the assets I’ve accumulated over a lifetime in my own country is extreme overreach and unethical in my opinion as not even the US taxes my assets while alive. So, I’d be essentially paying estate taxes every year.

The wealth tax is probably not an issue for most expats whose number one reason for moving is cost of living, but for folks who have accumulated modest wealth by US standards it’s a deal breaker. I estimated my wealth tax would be high 5 figures each year if I actually reported my assets. Then add on top of that the tax of my annual income from those assets!

Something is a little off with your math my friend. A high 5 digit would be $90,000 for example. At 1% estate tax rate, we are talking an estate valued at $9 Million. That's not what I would define as "modest" wealth by US standards, where only 18% of the population have a net worth over $1 Million.

As for a wealth tax in the US, a similar tax already occurs annually in the form of property taxes.

I agree that without a tax treaty between the two countries, wealthier households stand to lose.

 

[jeff8128]

deleted

 

[jeff8128]

Something is a little off with your math my friend. A high 5 digit would be $90,000 for example. At 1% estate tax rate, we are talking an estate valued at $9 Million. That's not what I would define as "modest" wealth by US standards, where only 18% of the population have a net worth over $1 Million.

As for a wealth tax in the US, a similar tax already occurs annually in the form of property taxes.

I agree that without a tax treaty between the two countries, wealthier households stand to lose.

Fair enough, modest is probably not the right word, just seems so compared to all the docs I’m surrounded by at work.

US wealth labels differ depending on the group: household, individual, people over 60, retirees, etc. Let’s say $2M qualifies as modest for professional retirees, then Chat says your wealth tax is $27K/yr = $2250/month, which many people could live on in AR.
I have to pay income tax in the US but in another country I’d like the tax, if any, to be limited to money that I transfer in. Yes, naive.

My property tax is $10K/yr which would be less than the $12,700 wealth tax on $1M USD so comparison really depends on the value of your property compared with your total assets.

 

[Alby]

(accidental post, deleted)

 

[desde_Holanda]

(accidental post, deleted)

I saw the text cause I got a notice by e-mail of your new post. Without publicing ofc, can you tell me why you deleted it? It read like a perfect summary.

 

[Alby]

Because I meant to post it to the new thread someone started last night about Pensionista residency and tax. It's there now.