To be or not to be... a Monotributario

[Shpongle]

Correct, it was repealed this year, but was the prevailing law previously.

you should know the laws

Thanks for clarifying.

While I broadly agree with "ignorance of the law is no excuse", there are cases where it is almost unreasonable to say "know the law" (and not only here in Argentina). What regular citizen can afford to contact a tax lawyer for every single detail? It's a minefield, really.

 

[LuckyLuke]

Correct, it was repealed this year, but was the prevailing law previously.


As I said, I'm not an accountant nor a lawyer, and yes, AFIP is more interested in getting people pay something via being monotribuistas than be fully en negro, but the issue I'd caution you and others with, which your accountant may or may not have told you, is that you are making fines, intimations, and even criminal prosecution very easy for AFIP and the UIF should they ever decide to actually enforce the laws (even years from now, and I've been reading cases in which they do this) or if you get connected to someone/their CUIT/L that is investigated for violation.

For example, you've created a direct paper/electronic trail demonstrating that you violated MULC regulations, falsified invoices (Factura "E" are not supposed to be issued in the manor you described), violated the regulations of the Monotribuista regime itself, and also violated WesternUnion's end user agreement for Argentina, including rules imposed on them by AFIP/UIF itself, and these are just to name a few.

Now, all that being said, I'm not suggesting you should panic or fire your accountant tomorrow morning or brace for a knock at your door by the UIF; my objective isn't to scare you or Shpongle or others; I honestly don't condone or condemn these kinds of practices in Argentina and am well aware that virtually no tech workers are fully en blanco, but I do think it's like recreational drug use or gambling: you should know the laws, the potential consequences of engaging in these practices, and review your tolerance for risk. Do I think you'll ever get caught? I'm a gambling man, and I wouldn't bet on it, but you've made it easier for them to throw the book at you if you do.

Hopefully once the cepo goes away so will the requirement to settle via the MULC and people can simply issue Factura E invoices and pay their taxes accordingly without the need for every bank to get a cut, and workers to lose 20% of their salary to the distortions caused by capital controls.

Thank you Quilombo for educating all of us. I think it goes without saying that every expat here has to understand their appetite for risk as they navigate the insanity of residing in a country without a taxation treaty and artificially pegged exchange rates.

That being said your comment reminds me of the "Use Tax" in the USA. Many state tax codes require, when you purchase an item in a state or neighboring county that has a lower sales tax than your home residence county, that you report the purchase and pay the sales tax difference. You can imagine the sheer quantity of "tax evaders" that weren't aware of this tax or willfully failed to report it. They too had direct paper trails of cars, appliances, and children's stuffed teddy bears purchased out of state and relocated.

Not every method of taxation is pragmatic and I think, in a country that openly publishes a dozen exchange rates, AFIP is well aware of that.

 

[FrankPintor]

Updated information about AFIP's reporting thresholds:

AFIP pone la lupa sobre billeteras digitales: investigará las transferencias que superen este monto en septiembre

El organismo monitorea a los usuarios de billeteras digitales que superen ciertos montos en saldos mensuales, como parte de una actualización de sus controles fiscales

www-infobae-com.translate.goog

As reported by AFIP, digital wallet users who make deposits or expenditures above $400,000 in September may be notified by the agency. This limit is the result of a recent update carried out by the administration led by Florencia Misrahi, which also established new amounts for monthly balances. In this sense, the limit for monthly balances should not exceed $700,000 if you want to fly under the agency's radar.

This measure not only affects those who operate with virtual wallets, but also banks and other financial entities that must report movements that exceed the aforementioned limits.