Taxation of income from outside of Argentina?

[davejohnson333]

Does Argentina now have a law that any citizen or resident of Argentina who has income or capital gains outside of Argentina is not required to pay taxes on those offshore capital gains or offshore income?

If income and capital gains earned outside of Argentina are tax exempt have you ever heard rumors that the government may start taxing these?

Dave

 

[gouchobob]

I think you have been given some bad information.

A citizen or resident of Argentina is suppose to pay income tax on their worldwide income. If you become a resident there you should be paying income taxes on any income you have that originates from outside Argentina. The following link provides a brief discussion on taxes there.

http://www.globalpropertyguide.com/Latin-America/Argentina/Living-There

If you look at the income tax rates in the link and compare them to the U.S. rates they are much higher in Argentina. In other words income taxes are higher in Argentina.

The bad news doesn't stop there. There is no tax treaty between the U.S. and Argentina to prevent double taxation. So your U.S. sourced income once you become a resident could be subject to both U.S. and Argentine taxes.

However, if you are a resident of Argentina any income you earn in Argentina is exempt from U.S. taxes up to around 80k. However since Argentine rates are higher you will actually pay more there.

If this all sounds like a good argument for not becoming a resident there you are correct.

 

[syngirl]

You'll need to look up which countries have taxation treaties with Argentina if you're not from the US. I know Canada does, and your income is not subject to double taxation. I ned to find out more from Canada Rvenue though as I'll be marrying an Argentine next year but I pay tax at home etc so my situation is going to get more convoluted. I'll post any information I get from them in the coming months.

 

[Recoleta Carolina]

I think you have been given some bad information.

A citizen or resident of Argentina is suppose to pay income tax on their worldwide income. If you become a resident there you should be paying income taxes on any income you have that originates from outside Argentina. The following link provides a brief discussion on taxes there.

http://www.globalpropertyguide.com/Latin-America/Argentina/Living-There

If you look at the income tax rates in the link and compare them to the U.S. rates they are much higher in Argentina. In other words income taxes are higher in Argentina.

The bad news doesn't stop there. There is no tax treaty between the U.S. and Argentina to prevent double taxation. So your U.S. sourced income once you become a resident could be subject to both U.S. and Argentine taxes.

However, if you are a resident of Argentina any income you earn in Argentina is exempt from U.S. taxes up to around 80k. However since Argentine rates are higher you will actually pay more there.

If this all sounds like a good argument for not becoming a resident there you are correct.

Excellent post, gouchobob. It took me several years and many twists and turns to learn all this. Very generous of you to provide the link to this much needed information for all U.S. citizens.

You are right. There is alot of bad information out there.

 

[gouchobob]

Argentina has tax treaties with the following countries:

Australia, Austria, Bolivia, Brazil, Belgium, Canada, Chile, Denmark, Germany, Finland, France, Italy, The Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom.

I believe the one with Austria is no longer in effect, folks from there should check the current status.

 

[shay]

You'll need to look up which countries have taxation treaties with Argentina if you're not from the US. I know Canada does, and your income is not subject to double taxation. I ned to find out more from Canada Rvenue though as I'll be marrying an Argentine next year but I pay tax at home etc so my situation is going to get more convoluted. I'll post any information I get from them in the coming months.

Thanks for posting syngirl. I am Canadian in the same situation. Keep us posted on what Canada Revenue says as I'm sure the rules will change some. Thanks!!

 

[dsc]

There is this little interesting tidbit on ARCA's site:
http://www.argentinaresidency.com/faqs/about-argentina-information.htm

Argentina taxes residents on worldwide income. As an Argentina permanent resident, you pay taxes on income generated within and outside Argentina. However if you do not generate income IN Argentina, then you are not requested to pay taxes over income generated abroad. If you simply want to live in Argentina and you generate income from business assets, investments, private/government pensions that are located in your home country, you will not be required to pay income taxes in Argentina.

If you plan to start a business in Argentina providing goods or services to other businesses located in Argentina, you will owe various local taxes, possibly including income tax. You should consult with an Argentina tax professional to determine what your tax liabilities will amount to.

If you plan on working for an Argentine firm, you will owe income tax if your monthly salary is over $4000 pesos ($1375 USD). The specific rate you pay depends on the amount of income you generate. The income tax is deducted from your salary and paid to the government by your employer. There is no reporting requirement for the employee.

If you are an independent or freelance worker who is working in the local market, you will also owe income tax if your income reaches the $4000 peso threshold. In this case, you will need to fill out a tax form (the form is available online) and turn in the form along with your payment in one of the tax collection shops located throughout the city.

 

[gouchobob]

There is this little interesting tidbit on ARCA's site:
http://www.argentinaresidency.com/faqs/about-argentina-information.htm

Argentina taxes residents on worldwide income. As an Argentina permanent resident, you pay taxes on income generated within and outside Argentina. However if you do not generate income IN Argentina, then you are not requested to pay taxes over income generated abroad. If you simply want to live in Argentina and you generate income from business assets, investments, private/government pensions that are located in your home country, you will not be required to pay income taxes in Argentina.

Sorry but I think ARCA got this wrong, it contradicts everything I have read from a number of expert sources. What is correct is that Argentina taxes residents on worldwide income. After that they state if you don't generate income there you don't have to pay taxes basically on anything which is totally incorrect. Think about it, what they are suggesting is illogical.

 

[Recoleta Carolina]

Sorry but I think ARCA got this wrong, it contradicts everything I have read from a number of expert sources. What is correct is that Argentina taxes residents on worldwide income. After that they state if you don't generate income there you don't have to pay taxes basically on anything which is totally incorrect. Think about it, what they are suggesting is illogical.

Gouchobob,

Can you verify, if you know, that the worldwide tax on permanent residents applies only if you live in Argentina SIX months of the year or more.

 

[davejohnson333]

If you simply want to live in Argentina and you generate income from business assets, investments, private/government pensions that are located in your home country, you will not be required to pay income taxes in Argentina.


There is an immigration lawyer on this forum who has over 30 threads. His username is "Attorney"

I have invited this attorney who can be found at: celano.com.ar
to come onto this thread and settle this whole thing once and for all.

He is very busy right now but when he gets the time he may come
onto this thread and help. So I can not guarantee he will be on the
thread.

The question is: is the bold lettering at the top of this post correct? If a person from the U.S. simply wants to live in Argentina and he or she generates income from business assets, investments, private/government pensions that are located in his or her home country, will he or she be required to pay taxes to the Argentine gov. or are they exempt from paying taxes on their income coming from outside of Argentina?

Thanks, David

P.S. If you do not tell them you have passive income from outside of Argentina then how are they going to know? And if they do not know how are they going to demand taxes from you? If you bring the money in via an ATM machine it can be from savings you had and not from present earnings that are taxable. Who would know?