Quote:
|
Originally Posted by minusonebit
I am working on a tax scheme I need to run by someone more knowledgeable than I to determine the legality thereof. Basically, it would go something like this:
I form a corporation here and there both. I am an employee of both corporations and paid as such. The US corporation pays me a salary of $1 less than the then-current poverty level, so that any taxes withheld would come back to me in a refund. With the rest of the funds, the US corp contracts my AR corp for "management and adminstrative services" as a contract consultant. Then the AR corp pays me as an employee of the corp and I pay taxes on whatever is needed there. The bulk of my income would be paid out from the AR corp.
I dont want to give up my citizenship because it would make re-entry more of a pain for coming back to visit friends and such. Not to mention, I have considered working in the US for a couple months out of the year. Hell, you could almost make enough running a paper route or working at McDonalds for a couple months to live in AR for a whole year. I dont want to have to carry a green card in my birth country.
For as much pleasure as it would give me to go down to the INS office and offically renounce my citizenship, thats a pleasure I dont think I will allow myself. At least not yet.
|
Got ya!! Smells problematic man - it's not an uncommon scenario, but very hard to implement as long as there is US citizenship involved.
You are prob already aware tho - the IRS will live allowances of around $80K year for foreign residency.
It may also be worth checking if there is any actual taxation due in Argentina for earnings outside that country - ie.. are net earning subject to taxation in Argentina. Several countries do not have taxation for stuff like net earnings - Costa Rica is one and there is no problems with Panama on this.
Damn.. just checked... Argentina is not a geo-based tax system but based on "worldwide income and profits"
This is where that US citizenship thing becomes a problem again - example: If that did not exist, you can literally do what the hell you like and have corps in other low or no tax areas and not have to waste any time on tax reporting.
Another clue is... and I never did ask
- almost all US expats I know always seem to be earning around $78K/year - a few K below the IRS allowance limits
(But hell.. that gets them a far higher lifestyle in places like central and south America even if that was a genuine statement of earnings)