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Friday, January 27, 2023

Will the new financial deal between Argentina and the United States affect Uruguay?

Tax residency in Uruguay is presented as an option

The signed intergovernmental exchange (IGA1) may produce some kind of secondary and unexpected effect on Uruguay, which has kept itself as one of the countries from maintaining any such agreement with the United States. Option to opt out of tracking by the Argentine state.

Meanwhile, some experts point to why Could “increase the flow” of Argentines who move their tax residence to Uruguay. “It can enhance the already existing flows,” he assured Ambito.com guillermo mollerTax, financial and legal advisory firm AMG,

In September this year, requests had already been made 4,892 tax residence by Argentina and it was estimated that, by the end of 2022will reach more than 8.000 Person

According to the expert, “there is no doubt that this is another factor that can help in the decision-making” of Argentines who are interested in immigrating to the country for tax purposes. “Whose accounts are in the United States. It may be that they are more interested in being tax residents of Uruguay and avoiding this exchange of information,” he explained.

diego vuilfrom consultant ville lafourcadeOn the other hand, he does not believe that IGA1 can generate a substantial increase in housing, on the other side of the pond, in 2020 and 2021, “beyond those that already existed when the Great Fortune was taxed”. Large assets and large bank accounts in Argentina are already structured as heads of a company or some legal vehicle,” he said. In other words, “He who should have done it has already done it.”

Actual move and the problem of potential “residues”

Vuille Lafourcade’s accountant stated that “having a tax residence is useless if the interested party does not lose the Argentine residence.” For this reason, when talking about this type of operation, “we must talk about the actual move”. and expressed: “We just don’t see it, that’s just why it’s happening.”

However, although there won’t be a “giant wave” for the expert, he acknowledged that something could happen. “remain” Among those who now consider this to be the “straw that broke the camel’s back” came full circle.

Option to form companies in Uruguay

What they notice from that consultation is that people who don’t have that big of an account in the United States are looking at Uruguay as a jurisdiction composition companies why change account ownership in the head of the companies, in instead of being in the head of a natural person,

As the country is governed today louis lacle pou It does not have any reciprocal agreement with the North American nation,” a Uruguayan company that owns financial assets in the United States. would be left out of this exchange between that country and Argentina, In this way, the interested party can protect their property in Uruguay without actually having to move.

How tax benefits work for new tax residents

Due to an amendment made a few years ago, Uruguayan residents are taxed on capital income that they have abroad. 12%, But, from 2020 onwards, “new tax residents were enabled to 11 years of ‘tax holiday’, where they pay 0% tax for those incomes abroad”, Möller explained.

Meanwhile, in the twelfth year, they start paying 12%. However they can also choose to pay from the first year 7% Get paid for those passive incomes and forever.

“It is a big attraction and could be icing on the cake for the fiscal turn around,” added Wuille for his part.

This applies to those who decide to declare their accounts abroad from Uruguay. However, according to Moller, since there is no exchange of tax information between the country and the US, “It is difficult for DGI to trace that he has this income. Argentina’s expected manoeuvres, then may Make a change of fiscal residence and do not declare what is abroad.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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