Working Remote In Argentina. Tax Implications?

trojans10

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HI guys,

I'm looking to work remotely for roughly 6 months in Argentina later this year for an extended amount of time.

I'm a citizen of both the US and Argentina. My employer is US based.

I'm wondering, what do I need to be worried about in terms of tax implications? How can I plan this accordingly with my employer? I was hoping their were a few digital nomads in this forum that could help me out?!

Thanks!
 

lucha54

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If you are an Argy citizen, you will be liable to pay taxes if you are here for more than 6 months in 1 year. So just stay for 6months minus 1 day and you won't need to declare anything to AFIP. I would say don't worry about it cuz for most of us there is no way /reason for AFIP to track us down, but if you are an Arg citizen I would just go for the 6 months minus 1 day thing.

If, in a one calendar year period you are only physically in the states for less than 33 (?) days (not sure if that's the right number but it's something like 31, 33 or 35) then you won't owe any tax AS LONG AS you make less than 90K/year and AS LONG AS you have official employee status with your company. If you are classified as an independent contractor and the US "client" files a 1099 for you, then you'll owe 15% for self-employment tax no matter what. If you go this route and don't pay the full income tax, it's fine, but you can't contribute to a Roth IRA or other retirement fund unless you pay all of the tax.

Any more questions or clarifications send me a PM and I will share as much as I know about this stuff.
 

andesmandes

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Interesting post. So independent contractor with US clients pays 15% tax to the US no matter what. The tax withholding for foreign person from the US is 30% (1042-S...) - correct? So at the end of the year you file a tax return and get the difference back from the IRS?
 

trojans10

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If you are an Argy citizen, you will be liable to pay taxes if you are here for more than 6 months in 1 year. So just stay for 6months minus 1 day and you won't need to declare anything to AFIP. I would say don't worry about it cuz for most of us there is no way /reason for AFIP to track us down, but if you are an Arg citizen I would just go for the 6 months minus 1 day thing.

If, in a one calendar year period you are only physically in the states for less than 33 (?) days (not sure if that's the right number but it's something like 31, 33 or 35) then you won't owe any tax AS LONG AS you make less than 90K/year and AS LONG AS you have official employee status with your company. If you are classified as an independent contractor and the US "client" files a 1099 for you, then you'll owe 15% for self-employment tax no matter what. If you go this route and don't pay the full income tax, it's fine, but you can't contribute to a Roth IRA or other retirement fund unless you pay all of the tax.

Any more questions or clarifications send me a PM and I will share as much as I know about this stuff.

WOW, good stuff! This is exactly what I was looking for! Thanks!

hmmm. So technically, if I want to stay longer than six months, all I need to do is leave the country.. come back to the US for a little bit, then fly back. This could work. I really don't know how long ill be down there, but just looking to follow the proper protocol so I don't get into trouble nor my company.

It sounds to me as if there really is no worry if I stay less than six months. Is there anything my company should be aware of? or is it really this simple.

I will shoot you a PM when I learn more! Thanks again, and appreciate the insight.
 

Girino

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Honestly, I wouldn't worry too much about Argentina. My recommendation is to think in the long run: if you aim is to go back to the US soon (let's say in 3-4 years), I wouldn't bother about getting things straight with AFIP. Stay put with IRS and that's it.

Moreover, if you don't need any Argie clients paying you locally, I wouldn't go through the hassle of monotributo and stuff.
 

lucha54

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WOW, good stuff! This is exactly what I was looking for! Thanks!

hmmm. So technically, if I want to stay longer than six months, all I need to do is leave the country.. come back to the US for a little bit, then fly back. This could work. I really don't know how long ill be down there, but just looking to follow the proper protocol so I don't get into trouble nor my company.

It sounds to me as if there really is no worry if I stay less than six months. Is there anything my company should be aware of? or is it really this simple.

I will shoot you a PM when I learn more! Thanks again, and appreciate the insight.

I didn't mean 6 months at a time, I meant 6 months in 1 calendar year. A lot of Argies who live bi-continentally (say they have assets in other countries) just spend less than 6 months / calendar year here and never have to worry about filing anything with AFIP, nor worry that AFIP will come after them. Again, highly unlikely that AFIP would go after little guys but anyway, just to be safe.
 

lucha54

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Interesting post. So independent contractor with US clients pays 15% tax to the US no matter what. The tax withholding for foreign person from the US is 30% (1042-S...) - correct? So at the end of the year you file a tax return and get the difference back from the IRS?

I think it's only 30% withholding if you're a technical employee (W2 instead of 1099) so then there would be no getting the 15% diff back. Besides the physical presence test that waves you of having to declare, there are a few other things, you'll have to read up on it online. My only way to get out of 30% taxes is because I'm physically not there, but there are other ways. I don't know what a 1042-S is, sorry.
 

andesmandes

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I think it's only 30% withholding if you're a technical employee (W2 instead of 1099) so then there would be no getting the 15% diff back. Besides the physical presence test that waves you of having to declare, there are a few other things, you'll have to read up on it online. My only way to get out of 30% taxes is because I'm physically not there, but there are other ways. I don't know what a 1042-S is, sorry.
The 1042-S is the form that my client (a company in the US) filed with the IRS for the 30% withholding. I am also physically not there but they insisted on withholding 30% as there is not tax treaty between the US and Argentina covering this. Before I lived in Europe and there was a tax treaty in place so clients did not have to withhold any taxes for me. I did some reading but could not find anything how to avoid it... IRS has some info http://www.irs.gov/Individuals/International-Taxpayers/NRA-Withholding
 

lucha54

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The 1042-S is the form that my client (a company in the US) filed with the IRS for the 30% withholding. I am also physically not there but they insisted on withholding 30% as there is not tax treaty between the US and Argentina covering this. Before I lived in Europe and there was a tax treaty in place so clients did not have to withhold any taxes for me. I did some reading but could not find anything how to avoid it... IRS has some info http://www.irs.gov/I...NRA-Withholding

OK so the tax treaty as I understand it means you have to pay taxes to Argentina on money you earn outside of the country. But that only applies if you are in Argentina more than 6 months / calendar year. Not sure how it would work to claim it back; sorry I can't offer more help.
 

andesmandes

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OK so the tax treaty as I understand it means you have to pay taxes to Argentina on money you earn outside of the country. But that only applies if you are in Argentina more than 6 months / calendar year. Not sure how it would work to claim it back; sorry I can't offer more help.
Probably the only way to avoid it is to incorporate or have some "intermediary" (who is not subject to the 30% withholding and not in the US) charging the client/paying me.
 
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