A self-employed person has only one tax residence. Instead, a company will have to make tax and social decisions. In any case, and for a company, the addresses are displayed on the company`s tax identification card (TIN), which in most cases usually matches. In tax matters, residence is also presented as an essential element for a natural and legal person, because if it is registered with the Public Administration of Public Revenue (A.G.I.P.), it is obliged to terminate its residence for tax purposes, in which all communications carried out there are considered valid. This domicile is called «tax domicile» (3). The main difference between one address and another is therefore the advertising of it. Thus, in the commercial register, anyone can check where the registered office of a company is located, but he will not be able to know where the tax domicile of the entrepreneur is, although the truth is that the normal thing is that the two coincide. In any case, both addresses must be provided to the tax administration to request the TIN or tax identification number, as well as to Social Security in order to be able to hire employees for the company. In this case, the seat must be the seat. And this may or may not coincide with the tax domicile, because we could install the tax residence in the personal house of the administrator.
What is tax domicile? The general tax law defines it as follows: «The place of residence of the taxpayer in his relations with the tax administration» If you are self-employed or professional, you have exclusively a tax residence (this is usually your habitual residence, although it can also be the place where the business is carried on). Taxpayers who do not comply with the obligation to declare their tax residence or if the termination is incorrect or non-existent are automatically subject to the determination of their place of residence at the registered office of A.G.I.P. and, in the case of property tax and the rate of remuneration for lighting, sweeping and cleaning services, the maintenance and maintenance of the sinks will be the tax residence at the location of the respective properties. The A.G.I.P. is authorized to require the formation of a special residence in the case of taxpayers residing outside the Autonomous City of Buenos Aires. Once we have registered as an entrepreneur, we must choose the tax domicile via form 036. This can be changed at any time by resubmitting Form 036. However, there are a few things to consider: the Consolidated Revenue Fund must know where a particular taxpayer is in order to have a legal agreement with them, for example, by informing them of the expiry of a tax; This domicile will be the tax domicile of the afIP. Tax domicile is the place where the principal and actual address or the administration of the activities of a taxable person is located, which may or may not coincide with his actual or legal residence.
The terms tax, social and tax domicile are often confused; However, it is important to distinguish between them because they may affect the functioning or procedures of interested parties by referring to a place other than the place where they should be located. Not in principle. The tax domicile is the one that serves as a relationship with the Ministry of Finance and the public administration, and the billing address is the one that appears at the time the invoice is issued. But can they keep up? Yes. The difference between the two criteria is that the billing address is the one in which the professional activity of a self-employed person or a company is carried out for the most part. In the case of legal persons, the Ministry of Finance estimates that the tax domicile will be where the management and management of the company will be carried out, and if this is different from the registered domicile, it will be the one where most of the fixed assets of the company are located. The tax authorities may also consider, as the tax residence of natural persons carrying out an activity, the place where the administrative management and management of the activity are actually carried out. While the legal seat is that held by the LEGAL PERSONS or the IDEAL EXISTENCE (companies, associations, foundations) which have been legally constituted or established or which are actually registered in the founding statutes of the company. In practice, the place of jurisdiction is generally referred to as that formed for procedural purposes in the field of justice; This can be considered a mistake as it is a special residence (usually the headquarters of the law firm or sponsoring lawyer in a case). While the registered office is the place where the company`s activity takes place, the tax domicile is the place where notifications from the tax administration are received. The most notable difference, however, is that the head office is known to the public, while the tax address is part of privacy. (1) Articles 89 to 102, Book One «Of Persons» (2) For example, it is governed by Articles 40 to 42 of the Code of Civil and Commercial Procedure of the Nation.
(3) Articles 21 to 29, Chapter IV «Tax domicile» of Title I of the Tax Code, text in force for the year 2013 The tax domicile is: CFO. Telecommunications engineer who loves accounting and taxes. He leads the development of the leading accounting program that makes life easier for thousands of freelancers and SMEs. Legal definition of each of these terms concerned by economic jargon The tax domicile must be specified at the time of preparation of form 036 or 037. And with these templates, you can also change it. In the event that there are several business centers and these are relevant for the performance of tax obligations, it is necessary that the invoice indicates the place of development of the activity and the tax residence, if these were different. On the other hand, receiving invoices with the wrong tax address means that you cannot deduct the cost. Before starting a business, we need to be aware of the differences between registered domicile and tax domicile. And it is true that in commercial companies, the two domiciles have different implications. They may or may not coincide depending on the circumstances of the business or the interests of the company.
Next, we will try to clarify the two concepts and determine the differences between the registered office and the tax domicile. In other words, if the tax administration makes a request to you at the address indicated as the tax address, even if you do not recover it, it will be confirmed as notified. Tax domicile is the one that taxpayers must register not only at the time of registration, but also include in their affidavits, forms or in the writings they submit to the local government. In the case of natural persons, the tax domicile is the place of actual residence and in the case of ideal or legal persons (companies, foundations, institutions in general), the tax domicile is the place of jurisdiction specified in the respective statutes or in the contract. Under no circumstances is the tax domicile recorded or appear in the certificate of incorporation of a company. The head office is something exclusive for companies, the self-employed do not have to have it. So, if you are self-employed, you can skip straight to the next section or read on in case you decide to start your own business one day. As stated above, the purpose of the tax domicile is to exercise better control over taxpayers and to be able to locate them in the simplest way, indicating the place of residence.
When registering for the census of entrepreneurs, professionals and mandates via form 036, we choose our tax address. And we can change it at any time by the same procedure. Therefore, it is very important to always correctly communicate the tax address of your company. As we have already argued, the differences between one and the other address are very subtle, minimal, so it is extremely easy to confuse the two terms. However, given that the two have different implications of great importance, it is important to know how to distinguish between one type of address and another. However, we must bear in mind that this difference only concerns companies and enterprises, since self-employed and self-employed workers and natural or private persons will not have a registered office.