Taxation Of Overseas Income For Argentinian Citizens.

[Chaya]

Hi,

I'm a citizen of Australia with permanent USA residency who is seriously thinking about a dual citizenship of Argentina. My issue is double taxation. I don't need to worry about triple taxation since Australia doesn't tax you on world wide income nor after you've left the country for 6 months and 1 day.

My concern is paying income tax in Argentina for earnings I make in the USA. Since the Argentina law taxes citizens on their global income. As does the USA.

So if I declared my USA income after becoming an Argentinian Citizen will I have to pay taxes in for the same in income to Argentina as well as the USA?

Thinking about it, I wonder what Messi does.

 

[Dada]

I think he must be praying now
http://www.skysports.com/football/news/11833/10303195/lionel-messi-tax-fraud-trial-concludes-in-barcelona

 

[Somewhereinba]

I don't need to worry about triple taxation since Australia doesn't tax you on world wide income nor after you've left the country for 6 months and 1 day.

I believe there is a double taxation agreement between Argentina/USA so you should only have to pay it once.

 

[Rich One]

hopefully there are International Taxation Experts on this board to help you in your decision I would instead ask for a referral for a TAX professional to assist you...!

 

[r3d3]

There is no "double taxation" treaty between Argentina and the US:

https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z

Actually most countries require you to pay taxes on your worldwide income. What is different between the US and many other countries is that the IRS taxes US citizens on their worldwide income even if they do not live in the US (with some exceptions: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion). Not so in Argentina. Argentina requires you to pay taxes only if you live in Argentina. So the question is how many days will you be in Argentina per year? Maybe somebody else can help out with the maximum number of days you can be in Argentina as a citizen without having to pay taxes here. I have 60 days in the back of my head - but I am not sure if this is correct and I can not seem find the link of the AFIP page, either.

 

[Girino]

I believe there is a double taxation agreement between Argentina/USA so you should only have to pay it once.

There is no tax treaty between the US and Argentina. You might want to check this page from the IRS for the full list of tax treaty.

 

[steveinbsas]

There is no tax treaty between the US and Argentina. You might want to check this pagefrom the IRS for the full list of tax treaty.

There is the foreign earned income exception of about $95KUSD for money earned outside of the USA, but if the OP is living in Argentina and being paid in the USA he/she may not qualify for the exception. Either way, the income will be taxable in Argentina. It won't matter if he/she is a citizen or a temporary or permanent resident. Argentina will want the tax to be paid.

Of course it's alwyas a good idea to consult a professional.

 

[Chaya]

I realize there is no tax treaty between the United States and Argentina. I also realize there is no Bank account information in a USA bank given to Argentina. Even though I understand Argentina is now making available bank account info of USA citizens in wuth bank accounts in Argentina.

So I don't see how Argentina will ever know what my earnings are in the United States. Can you imagine how little I would have left after paying taxes on USA sourced income and then paying taxes to Argentina on the same earned income. Incredibly unjust and plain stupid.

So if Argentina doesn't have access to my USA accounts then how could I be held to pay taxes on that already US taxed USA income?

The other issue is, let's say if I happen to own a lit, and I mean a lot of shares in a public company in the USA, how would they ever know. Being taxed on my assets in the USA would be devastating.

I own property here in Argentina. I am looking at building in Patagonia. My best friends live here and I want to become a Citizen. But I can't if it's going to be economic suicide.

Asking a tax lawyer to quote me what the Argentina tax code says is not necessary. I've read it and that is what is raising the questions. Finding what is the real situation and how citizens of Argentina or expats who became citizens and who have overseas income and assets handle their tax in Argentina is what I'm looking for.

Is the reality of non enforceability due to lack of information by the Argentinian authorities of assets and income in the USA enough of a protection going forward. Enough of a protection to allow me to become an Argentinian Citizen?

 

[el_expatriado]

There is no difference in your Argentina taxes for citizens or non-citizens. If you are a tax resident of Argentina (i.e. you live here on a permanent basis) you owe tax here on your worldwide income.

If you are getting paid a salary you can take the foreign earned income exclusion that the USA offers and pay no USA income tax as long as it is below the limit. You should not be paying double income taxes unless you somehow manage to be a tax resident in both countries at once. This is normally not possible or desired.

So your citizenship status is not going to change your tax situation.

Saludos!

 

[Chaya]

Thanks. So I can be an official resident of the USA while at the same time be a citizen of Argentina. Not earn an income in Argentina and therefore only pay income tax on my US earned income. Sounds great for me. If I understand it then, my residency status is what determines my tax liability. If this is correct, it's great.