Argentina’s National Chamber of Appeals in Federal Administrative Litigation has ruled that the loss of a taxpayer’s Argentina residency status, due to obtaining permanent residency or a “migratory” visa in another country, is not contingent upon the obligation to inform the tax authorities or accredit this change to the tax authorities.1

The regulatory requirements are intended to facilitate proper awareness of the taxpayer’s status/situation and control by the tax authorities but do not constitute the taxpayer’s legal residency status.

WHY THIS MATTERS

This decision clarifies that the loss of residency for tax purposes operates automatically and is not dependent on the taxpayer's communication to the tax authority.  The regulatory requirements facilitate the tax authority's oversight, but do not change the taxpayer’s legal residency status.

Companies and individuals should be aware of this “automatic” effect when acquiring permanent residency abroad in terms of handling a taxpayer’s Argentine and foreign-country tax obligations.

More Details

The National Chamber of Appeals in Federal Administrative Litigation overturned a previous ruling that had rejected the plaintiff's challenge to the tax authority's denial of his request to cease his fiscal residency status concerning the Income Tax and Personal Assets Tax.  

The plaintiff, an Argentine national, had obtained permanent residency in Paraguay in January 2019 and requested of the Argentine tax authories the cessation of his tax obligations in March 2020, seeking retroactive effect to January 2019.  The tax authority denied this request based on specific statutes, arguing that the notification of residency loss must comply with established statutory deadlines and conditions.

The National Chamber’s position, in considering the arguments in the case, was that residency is a subjective criterion used by tax law to link individuals to taxation.  The law presumes Argentine nationals are residents of Argentina unless they acquire permanent residency in a foreign state.  The loss of residency takes effect from the first day of the month following the acquisition of foreign residency, thereby making the individual a non-resident for Argentine-source income from that day forward.

KPMG INSIGHTS

Tax professionals and companies with globally mobile employees should review this ruling to understand its implications for tax compliance and residency status.  It is advisable to consult with a qualified tax professional to help ensure proper handling of the tax obligations and benefits under a taxpayer’s changed residency status.

FOOTNOTE:

1  Cámara Nacional de Apelaciones en lo Contencioso Administrativo Federal, Yege c/AFIP.  Summarized in Boletín de Jurisprudencia (a publication of KPMG in Argentina) (Abril 2025): https://assets.kpmg.com/content/dam/kpmg/ar/pdf/2025/boletin-de-jurisprudencia-abril-2025.pdf .

Contacts

rodolfo-canese-mendez
Rodolfo Canese Mendez

Partner, International Corporate Tax & GMS

KPMG Argentina

cecilia-nunez
Cecilia Nunez

Partner

KPMG Argentina

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* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

The information contained in this newsletter was submitted by the KPMG International member firm in Argentina.

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