Tax implications of COVID overstay

[BAHibs]

Hi everyone,

I'm going to ask a tax professional this question but I was wondering if anyone on here has any insight, knowledge or views on the tax implications (if any) for people who have overstayed in Argentina during the pandemic and have therefore stayed in Argentina more than 183 days?


I arrived in March 2020 after a few months in Brazil and left France after two years in 2019 where I'm not considered a tax resident anymore, and after reading about the tax system in Argentina it seems anyone who has spent more than 183 days here is considered a tax resident (irrespective of visa, residency etc).

I've read other countries will have exemptions for overstayers due to the Covid situation, others are saying "tough luck", others are saying it will be a case by case basis.


For those that have been here longer and have more experience with AFIP etc is this something they would likely follow up on?


My Argentine partner and I are thinking of buying a house together, and planning this year to marry and then I'll apply for permanent residency, so I'm trying to calculate if I should brace myself for taxes for this year in the future or if the AFIP will just be interested from the day I become a permanent resident (apart from the property taxes of course).

Edit: Just realised overstay is a bad choice of words given they have continued to extend the tourist visas..

 

[dsp27]

Where are you paying taxes? It really depends on the source of the income. If it's a non -argentine source and it's not a huge amount chances are the AFIP will not bother YMMV. Also check double taxation treaties that Argentina may have with other countries.
Generally, the AFIP are useless and I wouldn't sweat it unless you are a "big earner".

 

[BAHibs]

Where are you paying taxes? It really depends on the source of the income. If it's a non -argentine source and it's not a huge amount chances are the AFIP will not bother YMMV. Also check double taxation treaties that Argentina may have with other countries.
Generally, the AFIP are useless and I wouldn't sweat it unless you are a "big earner".

Thanks, now it is mainly online income from teaching English from non-Argentine sources (so no big $) but I did have a big(ish) sale of bitcoin this year (again though nothing out of the ordinary).

My partner has a few questions in relation to her tax returns etc so I'll take the oportunity to ask the accountant about my situation too.

 

[Alby]

The income tax law "seems" to state fairly clearly that the first trigger for becoming a tax resident in Argentina is having completed 12 months with a temporary residency granted by Migraciones. (If you can jump to straight to permanent residency by marrying an Argentine, the trigger would seem to be the day you obtain your permanent residency.) I have no engagement with AFIP and have not sought professional advice on any of this; it is merely my reading of Article 119 (particular Incision B) here: https://www.argentina.gob.ar/normativa/nacional/decreto-649-1997-44911/actualizacion

This issue has now cropped up a couple of times lately on this board. If you obtain any professional advice on the matter, particularly if contradicts or adds anything to what the law "seems" to say, perhaps you could share it here later on.

 

[BAHibs]

The income tax law "seems" to state fairly clearly that the first trigger for becoming a tax resident in Argentina is having completed 12 months with a temporary residency granted by Migraciones. (If you can jump to straight to permanent residency by marrying an Argentine, the trigger would seem to be the day you obtain your permanent residency.) I have no engagement with AFIP and have not sought professional advice on any of this; it is merely my reading of Article 119 (particular Incision B) here: https://www.argentina.gob.ar/normativa/nacional/decreto-649-1997-44911/actualizacion

This issue has now cropped up a couple of times lately on this board. If you obtain any professional advice on the matter, particularly if contradicts or adds anything to what the law "seems" to say, perhaps you could share it here later on.

Thanks for the link and info, will post back if/when I get feedback from the accountant of choice.