General Resolution No. 4236/2018 – Argentine Tax Residency

Author:Canosa Abogados
Profession:Canosa Abogados
 
FREE EXCERPT

On May 8th, 2018, the Federal Tax Authorities ("AFIP") published the General Resolution No. 4236/2018 in the Official Gazette, which regulates the way to determine the tax residence, the loss of resident status and certain double residence's cases.

The Income Tax Law ("ITL") determines that resident individuals in Argentina, residents pay taxes on their whole earnings obtained in the country and abroad1. Non-residents are taxed exclusively on their Argentine source earnings through a

On May 8th, 2018, the Federal Tax Authorities ("AFIP") published the General Resolution No. 4236/2018 in the Official Gazette, which regulates the way to determine the tax residence, the loss of resident status and certain double residence's cases.

The Income Tax Law ("ITL") determines that resident individuals in Argentina, residents pay taxes on their whole earnings obtained in the country and abroad1. Non-residents are taxed exclusively on their Argentine source earnings through a withholding mechanism at its source.

Tax residency

The tax residence determines in which way the taxpayers will pay taxes in Argentina.

- Regarding human persons, ITL anticipates that residents are:

i.- Argentine individuals, even those with acquired citizenship, excluding those that lost their tax resident status.

ii.- Foreign individuals that obtained their Argentine permanent residence permission, or those who were authorized to stay in the country with lawful immigration temporary permanence, during a period of 12 months. During this term, temporary absences comply with the terms and conditions established by the regulations in this regard.2

- About taxpaying legal entities, it is determined based on the address consigned in their files. That address must coincide or be in the same jurisdiction as the one verified by the recent documentary evidence issued by a competent public body, or that is included in an affidavit of the individual holder of the account.

Tax detachment

In order to define residence for tax purposes, the I.T.L. determines the degree of linkage of the taxpayer with the territory of the Nation. Also, the law determines that this condition is lost when:

(i) The status of permanent resident of another State is acquired;

(ii) If this situation has not been verified, the person remains continuously abroad for a period of 12 months with temporary presences in the country that do not exceed a total of 90 continuous or alternating days during that 12-month period.

...

To continue reading

REQUEST YOUR TRIAL