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I'm one of those, work remote from argentine is simply pay 90 tax becouse of a broken conversion rate technically, becouse you can pay 15 income tax and don't b
by imachine1980_ 4y ago
I'm one of those, work remote from argentine is simply pay 90 tax becouse of a broken conversion rate technically, becouse you can pay 15 income tax and don't but have a company and return assets like bonds, is a mess .
this is really useful and I trust stripe more than the competition
- koolba 4y agoWhat does “pay 90 tax” mean? Surely you don’t mean paying a 90% tax rate?!
- ilammy 4y agoProbably an exaggeration, but caveats apply. Say, you get paid in USD. You got paid: 10000 USD Income tax: 15% Government exchange rate: 130 ARS per 1 USD Unofficial exchange rate: 330 ARS per 1 USD Now, if you do things like daddy government says and use the official rate, you end up with this amount: 10000 USD * 130 = 1300000 ARS and then 1300000 * (1 - 0.15) = 1105000 But if you do what's good for you and still pay taxes to not go to jail: 10000 USD * 330 = 3300000 ARS and then 3300000 * (1 - 0.15) = 2805000 Now consider your "effective" tax rate: You got paid: 3300000 ARS (fair market value) Government rate: (3300000 - 1105000) / 3300000 = 0.66 Unofficial rate: (3300000 - 2805000) / 3300000 = 0.15 Note that it's before you consider future devaluation of peso. For tax purposes you can say you received 3.3M ARS, but just keep it as 10k USD. Then your effective "government cut" rate over the years could very well be in 90% territory if you do the stupid thing and hold pesos.