AFIP and IRS to share financial information with one another starting September 30, 2024

[Billy Goat]

Very true about how easy it is to open up a bank account in Miami for Argentines. I know several people that did that. I was amazed with how easy it was. But I also think that many Argentines doing this have EU passports. I am not sure if there is a way that IRS can track it to Argentines if they are using their EU passports. I doubt they are sophisticated enough to track that so many of these people will be ok.

 

[Cali Baby]

Many things are already changing there. My Porteño friend in BA is having all kinds of issues lately. She sells stuff online and was getting payments via Western Union for years with no issues. I don't think she was declaring the income to the tax authority there. Western Union was hassling all of her clients to ask what the payments were for. She is now forced to declare her income. So it sounds like all of these changes are working.

 

[Spend Thrift]

Does anyone know if I get my DNI and permanent residency here if my pension from the USA will get taxed here? I read some posts that said it was not. But I recently met an accountant while at a coffee shop near my apartment. He was sitting at the table next to me. He was not an expert on non-resident tax matters but he told me the information that I heard was not correct. He told me that once you become a tax resident of Argentina, technically foreign pensions are taxable in Argentina.

Does anyone have any experience with this? A few foreigners I met told me their pensions and social security payments are not taxed here. But I can't tell if this is something new or not. I don't want to get tax residency here if I am going to be taxed on my US pension.

 

[Finance Prof]

Does anyone know if I get my DNI and permanent residency here if my pension from the USA will get taxed here? I read some posts that said it was not. But I recently met an accountant while at a coffee shop near my apartment. He was sitting at the table next to me. He was not an expert on non-resident tax matters but he told me the information that I heard was not correct. He told me that once you become a tax resident of Argentina, technically foreign pensions are taxable in Argentina.

Does anyone have any experience with this? A few foreigners I met told me their pensions and social security payments are not taxed here. But I can't tell if this is something new or not. I don't want to get tax residency here if I am going to be taxed on my US pension.

I don't believe that AFIP is enforcing as of now the law on the books which is that this is taxable in Argentina. Keep in mind it has been almost impossible for AFIP to figure out what local citizens tax exposure is let alone foreigners that move here. But all this is most likely going to change with Milei's team. They need every possible dollar they can get now.

I am worried about this issue too. I am not yet getting a pension but it will kick in a few years. It would be horrible if Argentina taxes this.

You can read the fine print here:

Convenios para evitar la doble imposición - Materia - Acuerdos y Convenios Internacionales | ARCA

Conozca los Convenios, Acuerdos e Instrumentos Internacionales.

www.afip.gob.ar

 

[StatusNomadicus]

Argentina has had several tax amnesties to bring their cash back to Argentina and they are trying to do another. Most people still never did it so this is significant.

and the correct Libertarian move here for Milei's team would be to abolish all national taxes, and let the Provinces handle whatever they want. the elites will always be able to hide their money; the only affected are the middle-class and the would-be middle-class folks. taxes are theft

Does anyone know if I get my DNI and permanent residency here if my pension from the USA will get taxed here?

this is the question of the past year, not only for Pensioners but also Rentiers, people like me trying the Rentista Savings route, etc. - will my "passive income" (just money in a HYSA that is auto-transferred to me once per month) be taxed, since i have to bring it into Argentina as Pesos? would be horrible, if so.

 

[Betsy Ross]

I don't believe that AFIP is enforcing as of now the law on the books which is that this is taxable in Argentina. Keep in mind it has been almost impossible for AFIP to figure out what local citizens tax exposure is let alone foreigners that move here. But all this is most likely going to change with Milei's team. They need every possible dollar they can get now.

I am worried about this issue too. I am not yet getting a pension but it will kick in a few years. It would be horrible if Argentina taxes this.

You can read the fine print here:

Convenios para evitar la doble imposición - Materia - Acuerdos y Convenios Internacionales | ARCA

Conozca los Convenios, Acuerdos e Instrumentos Internacionales.

www.afip.gob.ar

I heard the same thing @Finance Prof that technically this could be taxed in Argentina. When I asked my accountant she told me not to declare it in Argentina and don't have it enter the system. Typical Argy advice. Her simple solution was do not have that income enter the system.

 

[Tango]

It seems like AFIP is casting the net on anyone doing transactions for over 400,000 pesos on digital wallets.

AFIP pone la lupa sobre billeteras digitales: investigará las transferencias que superen cierto 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

 

[enbits]

It seems like AFIP is casting the net on anyone doing transactions for over 400,000 pesos on digital wallets.

AFIP pone la lupa sobre billeteras digitales: investigará las transferencias que superen cierto 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

The article is a bit misleading because the prior limit was round 120,000 pesos so in the end what is saying is that they bumped it up to 400K.

 

[Johnny]

The article is a bit misleading because the prior limit was round 120,000 pesos so in the end what is saying is that they bumped it up to 400K.

Still that seems really really low. That is only around $300 USD. I'm not sure how many transactions that is but what do they do with all that data? Here in the US that would be just about the entire population. Maybe just a scare tactic?

 

[enbits]

Still that seems really really low. That is only around $300 USD. I'm not sure how many transactions that is but what do they do with all that data? Here in the US that would be just about the entire population. Maybe just a scare tactic?

Yes, still really low. They should just bump it up to at least 1000 US$.

 

[oil rush]

Yes, still really low. They should just bump it up to at least 1000 US$.

Agree! Previous amounts are way too low. Many people still using cash but I was surprised to see grocery stores reporting cash was only 15% of their total now. Part of it might be I noticed there are a lot of promotions and discounts to use a card. Many days of the week they have discounts up to 25% based on what my novia mentioned to me.

 

[import export]

A few of my well to do Porteño friends are all worried because they have LLC's in the USA and they felt comfortable not having properties or bank accounts in the USA under their names. But one just told me that Congress passed the Corporate Transparency Act which is a new federal reporting requirement for LLCs and Corporations and any entities created by any Secretary of State. They have until December 31, 2024 to fill out a Beneficial Ownership report. $500 per day fines or up to 2 years in jail.

It sounds like there is a risk that the US government could share this with AFIP. Curious to know if locals are worried at all.

 

[Digital Nomad]

Looks like the sharing has begun.

La AFIP recibió datos de unas 145.000 cuentas de argentinos en EEUU: controles para el blanqueo y detalles del intercambio

Con esa información, el Gobierno reforzará los controles fiscales para mejorar la recaudación tributaria. Incluye datos de cuentas en el sistema financiero existentes en el período fiscal 2023

www.infobae.com

 

[Betsy Ross]

Looks like the sharing has begun.

La AFIP recibió datos de unas 145.000 cuentas de argentinos en EEUU: controles para el blanqueo y detalles del intercambio

Con esa información, el Gobierno reforzará los controles fiscales para mejorar la recaudación tributaria. Incluye datos de cuentas en el sistema financiero existentes en el período fiscal 2023

www.infobae.com

Wow 145,000 people is quite a bit of Argentines that have accounts there. I would imagine even if they closed the accounts, the information will be interesting to AFIP and put people on their radar.

I know some that have accounts in the USA but they opened them up with their Spanish or Italian passports. I don't think there is any way IRS/AFIP can cross reference that they also are from Argentina. I doubt they were dumb enough to use any address from Argentina.