{"id":412,"date":"2011-09-16T06:17:36","date_gmt":"2011-09-16T06:17:36","guid":{"rendered":"https:\/\/kierjoffe.com\/news\/?p=412"},"modified":"2018-07-19T15:38:59","modified_gmt":"2018-07-19T18:38:59","slug":"compliance-issues-that-arise-for-foreign-workers-in-argentina","status":"publish","type":"post","link":"https:\/\/www.kierjoffe.com\/news\/lawyer-argentina-attorney-buenos-aires-law-firm\/compliance-issues-that-arise-for-foreign-workers-in-argentina\/","title":{"rendered":"Compliance issues that arise for foreign workers in Argentina"},"content":{"rendered":"

Compliance with Migration Law<\/strong>
\nIn Argentina,tourist visas are granted for a term of up to three months and may be extended for another\u00a0three months upon their expiration.If a foreigner enters the country under the category of tourist, he or she\u00a0will not be legally entitled to render services or perform productive work in Argentina.<\/p>\n

Argentine migratory regulations\u00a0establish that if a foreigner intends to\u00a0work in Argentina for a short period of\u00a0time, he or she may request a\u00a0Temporary Work Permit. Such permit\u00a0application does not require any prior\u00a0processing prior to arrival in Argentina.\u00a0The foreigner should enter the country\u00a0as a tourist and only then request the\u00a0Temporary Work Permit in the National\u00a0Migration Bureau in Argentina, provided\u00a0that he or she will render services to an\u00a0Argentine entity.Temporary Work\u00a0Permits are issued for up to a maximum\u00a0term of 30 days (15-day initial period,\u00a0renewable for another 15 days) and are\u00a0granted immediately upon their request.\u00a0Alternatively,citizens from certain\u00a0countries specifically included in the\u00a0applicable regulations,who declare\u00a0upon their arrival that they are visiting\u00a0Argentina on business,may enter under\u00a0a special category and stay in the\u00a0country for a term of up to three\u00a0months,that may be extended for an\u00a0additional three months upon its\u00a0expiration.This category authorizes a\u00a0limited number of commercial and\/or\u00a0professional activities in Argentina,\u00a0including consultations, negotiations,\u00a0business meetings and conferences.\u00a0Employment under this latter category\u00a0is not authorized.\u00a0There are two alternatives for obtaining\u00a0a work visa:(i) a foreign company who\u00a0assigns its employee to work in\u00a0Argentina due to a service or technical\u00a0assistance agreement with an Argentine company, or (ii) a local company who hires the foreigner and includes him or her as an employee in its payroll.<\/p>\n

Compliance with Employment Law<\/strong><\/p>\n

Pursuant to Section 3 of Employment Contract Law (\u201cECL\u201d),individuals rendering services in Argentine territory must be subject to Argentine labor legislation.This is a mandatory\u00a0provision because labor regulations are defined as public policy,which means that parties cannot agree to a different law.<\/p>\n

The law requires an Argentine-based employer to hire such individuals, once the individual has the work visa. The lack of an Argentine-based employer and subsequent employment with a non-Argentine entity is a violation of Argentine law,and exposes the non Argentine entity to several penalties, including employment,migration, social security and tax. The only exception to this rule would be the case of foreign employees visiting Argentina for a brief period of time due to occasional services in Argentine territory for their foreign employer. Although there is no provision in the employment law about the extension of this occasional stay,a consistent interpretation with the migration law authorizes a stay of up to 30 days. There is no specific provision for employees sent on commission beyond30 days (e.g., due to a services agreement between the foreign employer and an Argentine entity,to install a machine,to research the market, etc.),and there is a grey area. As explained above,the Migration authority grants a work visa for such cases and does not require an Argentine entity to be the employer. Furthermore,the Retirement and Pension Law sets forth that those Argentine-based employees sent abroad on commission are still subject to the Argentine law, hence a converse construction could be made. In any case,it is advisable to have an Argentine employer when the stay exceeds 90 days.To the best of our knowledge there are no relevant precedents regarding the above mentioned scenario. The assignment scheme (also known as secondment), under which the home company maintains employment status and makes certain payments,while at the same time the host company pays certain expatriate benefits,is contradictory to Argentine law. The Argentine regulations require that all compensation paid to the expatriate be declared in the pay statement in Argentina by the Argentine employer, for purposes of employment related\u00a0benefits,social security and taxes. Therefore,whenever the foreign employer pays compensation to the \u00a0expatriate, such payment needs to be declared by the Argentine employer.The only exception to this rule would be the case in which the expatriate performs work for two employers simultaneously, in different jurisdictions, under a dual employment scheme. As regards acknowledgement of services for the group,Argentine labor courts have awarded severance factoring the entire period of services,as opposed to the period worked in Argentina.<\/p>\n

Compliance with Social \u00a0Security Law<\/strong><\/p>\n

Expatriates working in Argentina are subject to the social security system, under which employees and employers are mandated to pay contributions.<\/p>\n

There are two exceptions to this rule:<\/p>\n

(i) expatriates who are appointed as corporate directors,and (ii) expatriates who stay less than two years. Under the Argentine Retirement and Pension Law,corporate directors are\u00a0obliged to pay contributions as \u201cindependent workers\u201d,as opposed to \u201cdependent workers.\u201dCorporate directors who also work as employees can opt to contribute as employees, but otherwise are exempted. The Argentine Retirement and Pension Law also provides that either the employer of foreign scientists, professionals or technicians (\u201cexpatriate\u201d) or the expatriate may request from the social security authority an exemption from social security payments for up to a two year period. The reduction is effective as from the date of filing the request.If the authority does not approve the exception,the employer must pay the outstanding social security contributions plus interest. Additionally,Argentina has signed several social security treaties,which in general terms,allow employees to either factor in the period within which they have worked in Argentina to obtain a retirement or pension-related benefits in their home country, provided that their home country has executed a social security treaty with Argentina, and\/or to continue to be affiliated with the social security system of the home country for a limited period of time (i.e., between one and two years).In the latter case,the employees must follow a procedure required by the corresponding authorities of both countries. Because there is no totalization agreement between the United States and Argentina,social security payments will need to be made in Argentina,with the exception of the professionals and technicians who come to work for less than two years.<\/p>\n

Compliance with Tax Law<\/strong><\/p>\n

Income Tax<\/strong><\/p>\n

The Argentine employer is required to withhold income tax (and social security contributions,if applicable) on a monthly basis.The tax base for withholding and contributions is the total salary and in-kind benefits the employee receives. The employee will be treated as an expatriate taxpayer,which permits the employee to be taxed only on his or her Argentine source income for the first five years worked in Argentina.After five years in Argentina,the expatriate\u00a0will be subject to income tax on his or her worldwide income from 9 percent to 35 percent depending on the net taxable income of the employee. Expatriates who reside in Argentina for\u00a0less than six months are subject to a flat withholding tax of 24.5 percent on their gross Argentine source income, rather than the regular progressive tax rates referred to above.The taxable income for expatriates working in Argentina for more than six months in a calendar year is subject to income tax withholding ranging from 9 percent to 35 percent depending on the net taxable income of each employee Individuals who reside in Argentina for more than six months in a calendar year are entitled to deduct an amount equivalent to AR$9,000 (approximately US$2,330) from their gross income.In addition,a standard annual tax deduction equivalent to AR$34,200 (approximately US$8,860) is available for benefits received for services arising\u00a0from a labor relationship.<\/p>\n

Personal Assets Tax<\/strong><\/p>\n

If the expatriate remains in Argentina for less than five years, he or she will be subject to Personal Assets Tax on assets held in Argentina exclusively.The\u00a0applicable rate ranges from 0.5 percent to 1.25 percent depending on the valuation of the computable assets. In case the expatriate remains in Argentina for more than five years, he or she will be considered domiciled in Argentina and,consequently,subject to\u00a0Personal Assets Tax on worldwide assets.The applicable rate ranges from 0.5 percent to 1.25 percent depending on the valuation of the computable assets.<\/p>\n

Buenos Aires Argentina Labor and Employment Lawyer<\/h1>\n

The Buenos Aires Argentina labor attorney\u00a0professionals of Kier Joffe support clients in human resources planning and restructuring. Modern labor criteria and geographic mobility for companies takes considerable legal prowess, and the Buenos Aires Argentina labor lawyer professionals of Kier Joffe\u00a0\u00a0have the experience and expertise to help. As well, the Argentina labor attorneys have experience in prevention and resolution of individual and collective disputes for clients. Kier Joffe\u00a0provides labor advice intended to avoid controversies, reduce costs and optimize results, keeping clients permanently informed on the evolution of applicable regulations and their interpretation by perspective governments.<\/p>\n

The proven Buenos Aires \u2013 Argentina lawyer professionals at the\u00a0Kier Joffe law firm<\/a>\u00a0have experience working with foreign clients involved in all kind of cases\u00a0in Argentina.\u00a0Buenos Aires Argentina attorney<\/a>\u00a0professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires \u00a0lawyer in Argentina.<\/p>\n

www.kierjoffe.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Compliance with Migration Law In Argentina,tourist visas are granted for a term of up to three months and may be extended for another\u00a0three months upon their expiration.If a foreigner enters the country under the category of tourist, he or she\u00a0will not be legally entitled to…<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[12,30,41,11,94,93,8,9,6],"class_list":["post-412","post","type-post","status-publish","format-standard","hentry","category-english","tag-argentina","tag-argentine","tag-attivita-e-sviluppo-immobiliare-in-argentina","tag-buenos-aires","tag-employment","tag-labor","tag-law-firm","tag-law-office","tag-lawyer"],"yoast_head":"\nCompliance issues that arise for foreign workers in Argentina - News and Articles<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kierjoffe.com\/news\/lawyer-argentina-attorney-buenos-aires-law-firm\/compliance-issues-that-arise-for-foreign-workers-in-argentina\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Compliance issues that arise for foreign workers in Argentina - 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