Working Remote In Argentina. Tax Implications?

[Ceviche]

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

One of your best posts serafina.

Appreciated

 

[andesmandes]

Not going through the hassle of monotributo makes sense if you are here on a temporary basis. But If you are considering to finance a house or a car then you normally need to show some kind of (declared) income in Argentina (dependent work, contracting, monotributo etc.). Or just for getting local credit cards to take advantage of the various offers that come with them. And being a permanent resident with no declared income could cause you trouble when making bigger purchases. Buying a new car without any declared income will most certainly make the Afip suspicious.

 

[demokritos]

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.

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

It's 330 full days outside of the US, where "day" means 24 hour period starting at midnight and ending at midnight. Thus if you fly from Argentina at 9pm to NY and land at 6am, you've lost 2 days as neither of those count toward your 330. If you fly/land on the same day you only lose 1 day. That's my reading of the "physical presence test".

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion---Physical-Presence-Test

If you're employed as a W2 you're subject to withholding and you'll get your FIT and SIT back when you file. You still pay medicare & social security. You can file your federal return electronically, but a lot of states demand a paper return if you're claiming the exclusion.

I don't know as much about the Argentine side but I believe lucha24 is correct.

 

[lucha54]

Not going through the hassle of monotributo makes sense if you are here on a temporary basis. But If you are considering to finance a house or a car then you normally need to show some kind of (declared) income in Argentina (dependent work, contracting, monotributo etc.). Or just for getting local credit cards to take advantage of the various offers that come with them. And being a permanent resident with no declared income could cause you trouble when making bigger purchases. Buying a new car without any declared income will most certainly make the Afip suspicious.

why would you want to buy a car if you're only here 6 months / year. you gotta work this system in the way that makes it easiest for you, not complicate. Follow the KISS rule, always!

 

[andesmandes]

why would you want to buy a car if you're only here 6 months / year. you gotta work this system in the way that makes it easiest for you, not complicate. Follow the KISS rule, always!

Sorry if I did not make that clear enough in my post. What I meant to say is: When you are here just temporary - then yes monotributo etc. does not make sense in most cases. But if you are here permanently or at least a resident for many years then not having some form of declared income (like a montotributo) might cause some issues at some point (purchasing new car, trying to get a credit card, finance a home and so on).

 

[Ceviche]

Sorry if I did not make that clear enough in my post. What I meant to say is: When you are here just temporary - then yes monotributo etc. does not make sense in most cases. But if you are here permanently or at least a resident for many years then not having some form of declared income (like a montotributo) might cause some issues at some point (purchasing new car, trying to get a credit card, finance a home and so on).

Why would you want a credit card or a car in BA.

Why would you want to finance your home at 25% interest rate?

Paying cash is the best way to live in BA.

 

[thorsten]

Why would you want a credit card or a car in BA.

Because you often get significant discounts using a card instead of cash?

 

[Ceviche]

Because you often get significant discounts using a card instead of cash?

Yes. you are right.

But after weighing the pros and cons, the significant discounts are not worth it ( IMHO)

 

[citygirl]

Yes. you are right.

But after weighing the pros and cons, the significant discounts are not worth it ( IMHO)

INteresting - why do you say that?

I was just deciding on that but after looking at a) 10-20% discounts plus the ability to pay in 12 quotas without interest - it seems crazy not to get a credit card. What are the cons? I've always paid cash for everything but now I"m thinking I need to start using a local card.

 

[andesmandes]

Why would you want a credit card or a car in BA.

Credit card: Discounts, discounts, discounts. And to make purchases long term 12 or sometimes even 24 months with 0 interest at 30% inflation is a good deal.

Car: A: I do not live in BA.
B: Even if I lived in BA I would still want my a car to travel etc.

Why would you want to finance your home at 25% interest rate?

There are several ways to finance you home for less than 25%. And even with 25% interest it might not be a bad deal when considering that inflation is around 30%