Tax On Assets Abroad

[Girino]

I have been consulting with a local accountant to check my fiscal status here. He says I should make a declaración jurada of my assets abroad (on April 2017) and that I will likely have to pay something for the money deposited in my foreign accounts (money earned before moving here). It seems quite odd to me - he talked about 0.75% per year. he also said that if I were to had a property abroad, AFIP would consider it as rented (even if it is not) and I would have to pay taxes on that rent, as well.
Does any of this sound okay to you?

 

[TomAtAlki]

I'm not sure but....If you are a permanent res then when you declare you will owe a 10% repatriation fee on those world wide assets that you haven't paid tax on previously plus the 0.75% tax. If you are not a perm res you do not have to pay taxes on yourworld wide assets. Don't know about the phantom rental income. In fact, get a second opinion on everything I said

T/

 

[nikad]

Your accountant is correct Serafina. What TonAtAlki says is not correct: She does not need to do a blanqueo, her assests are perfectly en blanco, just not declared. She might need to pay and declare previous years since she became a permanent resident but only if her country does not have a double tax treaty.

Money legally earned and deposited in Argentine bank accounts does not pay bienes personales afaik. For example in Argentina, if you earn 20000000 legally and have them in a bank account, invested in bonds or CD deposit, you have to declare them but you do not pay bienes personales.

What the accountant said about the property is also correct: if the property's value is over 800000 pesos for 2016 ( and 320000 ) pesos for previous years, you must pay bienes personales. It is assumed to be rented out so depending on how much it is valued at, etc you might own impuesto a las ganancias.

The key factor is whether Italy has a double tax treaty or not. Also, I am not sure how much information both countries are currently exchanging. As TomAtAlki suggested I would get a second opinion just in case, but I think he is on the right path.

Whether you pay or not, has to do with many factors, such as how long you plan to be here. If you plan to own property here, etc.

 

[TomAtAlki]

Thank you for correcting me Nikad.

Just to be clear, you are saying money legally earned and in a bank account in the US (or anywhere) does not count towards your world wide assets, i.e. not taxed.

T/

 

[Girino]

Thank you for correcting me Nikad.

Just to be clear, you are saying money legally earned and in a bank account in the US (or anywhere) does not count towards your world wide assets, i.e. not taxed.

T/

From what I understood talking with "my" accountant, YES, they do count. Basically, he told me that money I earn abroad and deposit abroad are taxed abroad but the next year you have to make this declaración jurada of your assets abroad and you might have to pay something to Argentina, as well.

He also said that there is a sort of tax treaty between Argentina and the US, which is opposite to what I had always heard. On the IRS website, there is no such mention of this. Maybe it is a convention or something less important than a tax treaty - I don't know.
As for Italy, yes there is a tax treaty between Argentina and Italy (and also between Italy and the US), but it looks like it won't change a little bit about how much I should be paying to Argentina about my assets abroad.

 

[nikad]

Thank you for correcting me Nikad.

Just to be clear, you are saying money legally earned and in a bank account in the US (or anywhere) does not count towards your world wide assets, i.e. not taxed.

T/

As an Arg perm resident you owe taxes on money deposited in a bank account abroad and you must declare it, if money is deposited in a bank account in Argentina it does not pay bienes personales, you just need to declare it. It is possible that you owe ganancias ( income tax ) but if you have already paid all of that, you just need to declare it annually. The problem between countries that have no tax treaties for their citizens / residents, is that you have to comply with both.

Here is the local law with all the exceptions:
https://www.afip.gob...6071/texact.htm

http://servicios.inf...6071/texact.htm

 

[nikad]

From what I understood talking with "my" accountant, YES, they do count. Basically, he told me that money I earn abroad and deposit abroad are taxed abroad but the next year you have to make this declaración jurada of your assets abroad and you might have to pay something to Argentina, as well.

He also said that there is a sort of tax treaty between Argentina and the US, which is opposite to what I had always heard. On the IRS website, there is no such mention of this. Maybe it is a convention or something less important than a tax treaty - I don't know.
As for Italy, yes there is a tax treaty between Argentina and Italy (and also between Italy and the US), but it looks like it won't change a little bit about how much I should be paying to Argentina about my assets abroad.

If the money is deposited in a bank account abroad, it might be subject to bienes personales. I am not an expert on the matter, but can give you some basic ideas. How long have you been an Arg perm resident? Money abroad si over 305000 pesos - 20.000 usd ? Are foreign accounts just under your name or is a joint account? The very , very , very last resource is to go for blanqueo. ( which is crazy imho if you have legal money 10% is a steal ).

 

[nikad]

Serafina, as far as I can see, if you have everything OK in Italy, all taxes paid, etc, you should not be paying anything extra on that. You might want to take this to your accountant to take a look at: http://www.afip.gov.ar/institucional/Documentos/acuerdos/ITALIA.htm

 

[nikad]

Here is a detail of all countries that have a double tax treaty with Argentina and the detail.

http://www.mecon.gov.ar/sip/basehome/dir3_convenios.htm

 

[nikad]

This is the current state of things between Argentina and the US regarding taxes and tax information exchange: http://www.lapoliticaonline.com/nota/100105/

So far, there is no exchange and no double tax treaty. Experts say that in order for both countries to exchange information ( among other requirements ) a double tax treaty is in order, so basically if you are American and Argentine perm resident, you best bet would be to watch and wait, as long as you have paid all your taxes in the US, there should be nothing to fear. And of course stay up to date with any taxes owed if you are working in Argentina and earning income here.