Tax Residency in Argentina
1. Criteria for Determining Tax Residency in Argentina
According to Article 11 of the Argentine Income Tax Law, an individual is considered a tax resident in Argentina if they meet any of the following criteria:
- They have their habitual residence in Argentina.
- They are present in Argentina for more than 183 days during a calendar year.
- They have their economic interests in Argentina.
For entities, tax residency is determined based on their legal domicile or the place where their effective management is carried out.
2. Impact of International Tax Treaties on Tax Residency Criteria
Argentina has entered into numerous tax treaties with other countries to avoid double taxation and promote cross-border trade and investment. These treaties may modify or provide exceptions to the standard criteria for tax residency as defined in domestic law.
One of the key provisions in these treaties is the "tie-breaker" rule. This rule is used to determine the tax residency of an individual who is considered a resident of both Argentina and the other treaty country under their respective domestic laws.
The tie-breaker rule typically considers factors such as the individual's permanent home, family ties, and economic interests. By establishing clear rules for determining tax residency in cases involving cross-border activities, these treaty provisions aim to prevent double taxation and enhance economic cooperation between the two countries.
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