subject: Filing Taxes While Residing In Argentina [print this page] As a citizen or permanent resident of the United States, it is required by law that a tax return be filed with the federal government each year, be they be residing within the United States or elsewhere. Another important submission would be an informational return when the citizen's assets are deposited in foreign bank accounts.
The United States is one of the few countries in the world that tax the international income of its citizens residing outside its borders. To prevent double taxation, the following provisions are in force to assist its taxpayers residing overseas:
1.Foreign Earned Income Exclusion. This tax break allows an individual to decrease the taxable income by the first $91,500 earned as a result of work or labor as a resident in a foreign country. It is presumed that this income is already taxed in the country where the citizen is residing;
2.Foreign Tax Credit. This provision allows the lowering of the citizen's payable tax bill on the remaining income under certain schedules that have already been paid to a foreign government;
3.Foreign Housing Exclusion. This allows the exclusion from taxable income amounts paid for household expenses that are incurred as a consequence of living abroad. This is especially applicable to citizen's seconded or assigned to work in a foreign country;
When the US citizen is residing in Argentina, the following are the tax rates applied to income earned or accrued in the country:
a.For 0 to 10,000 pesos, the tax rate applicable is 9%;
b.For 10,001 to 20,000 pesos, it is at 900 pesos plus 14%;
c.For 20,001 to 30,000 pesos, it is at 2,300 pesos plus 19%;
d.For 30,001 to 60,000 pesos, it is set at 4,200 pesos plus 23%;
e.For 60,001 to 90,000 pesos, it is at 11,100 pesos plus 27%;
f.For 90,001 to 120,000 pesos, it is at 19,200 pesos plus 31%;
g.For income above 120,000 pesos, it is at 28,500 plus 35%;
The plus percentage tax rate applies to income above the floor rate multiplied by the indicated rate of tax. There are also a few other exclusions, which are as follows:
1.Capital gains resulting from sales of non-income or investment assets are not included in the determination of capital gains taxes;
2.Interest, dividends, rentals and royalty incomes are included under earned income and thus the above schedule indicated is applicable.
Taxes for income for employees are deducted at source in Argentina. This means the employer deducts the taxes and remits the same to the government for and on behalf of the employee, regardless of nationality.
by: Bobby Castro
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