This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

Ernst & Young

Assurance | Tax | Transactions | Advisory

About Ernst & YoungErnst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 144,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.

Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com.

About Ernst & Young’s Tax servicesYour business will only achieve its true potential if you build it on strong foundations and grow it in a sustainable way. At Ernst & Young, we believe that managing your tax obligations responsibly and proactively can make a critical difference. So our 25,000 talented tax professionals in over 135 countries give you technical knowledge, business experience, consistent methodologies and an unwavering commitment to quality service — wherever you are and whatever tax services you need. It’s how Ernst & Young makes a difference.

© 2010 EYGM Limited. All Rights Reserved.

EYG no. DL0304

The 2010 global executiveIndividual tax, social

security and immigration

The 2

01

0 global executive

2010-TGE_cover.indd 1 9/28/2010 2:40:55 PM

Preface

The Global Executive (TGE) summarizes the personal tax systems and immigration rules for expatriates in 150 countries. The content is based on information current as of 1 January 2010, unless other-wise indicated in the text of the chapter. Changes to the tax laws and other applicable rules in various countries covered by this pub-lication may be proposed. Therefore, readers should contact their local Ernst & Young firms to obtain further information.

Tax informationThe chapters in TGE provide information on personal income tax, other taxes, social security, tax filing and payment procedures, double tax relief and tax treaties, temporary visas, work visas and permits, residence visas and permits, and family and personal considerations. The chapters in TGE also include appendices containing tables on the taxability of income items and sample tax calculations. TGE also contains a list of contacts for emerging markets. For the reader’s reference, a chapter listing the names and symbols of the foreign currencies mentioned in the guide can be found at the end of the publication.This publication should not be regarded as offering a complete explanation of the tax matters referred to and is subject to changes in the law and other applicable rules. Also, this publication does not provide guidance on the local application of the law in practice. Local publications of a more detailed nature are frequently avail-able, and readers are advised to consult their local Ernst & Young professionals for further information.Each year Ernst & Young also produces the Worldwide Corporate Tax Guide (WCTG), which provides summaries of corporate tax regimes in more than 140 countries, and the Worldwide VAT, GST and Sales Tax Guide (WVGSG), which covers value-added tax, goods and services tax and sales tax systems in more than 80 countries and the European Union. In addition, Ernst & Young regularly produces Human Capital survey reports, such as the Global Mobility Effective ness Survey, which investigates issues and trends relating to international human resources function effectiveness and processes, and Managing Today’s Global Work-force, which focuses on the key aspects of talent management in an ever-changing world. Electronic versions of TGE, the WCTG and the WVGSG, as well as other tax publications, are available on EY Online. To access EY Online, readers should contact their local Ernst & Young professionals.

DirectoryOffice addresses, as well as names, direct telephone numbers and email addresses of international executive and expatriate tax and immigration contacts, are provided for the Ernst & Young member firms in each country. Certain countries also list their International High Net Worth Group contacts. These contacts are professionals who focus on specific planning for individuals who have signifi-cant personal wealth.The international telephone country code is listed in each country heading and, if presented as part of a telephone or fax number, is preceded by a plus sign (+). Telephone and fax numbers are pre-sented without the domestic prefix (1, 9, or 0) sometimes used within a country.

Ernst & YoungAugust 2010

This publication contains information in sum-mary form and is therefore intended for general guidance only. It is not intended to be a substi-tute for detailed research or the exercise of pro-fessional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refrain-ing from action as a result of any material in this publication. On any specific matter, refer-ence should be made to the appropriate advisor.

About Ernst & Young's Tax servicesYour business will only achieve its true poten-tial if you build it on strong foundations and grow it in a sustainable way. At Ernst & Young, we believe that managing your tax obligations responsibly and proactively can make a critical difference. Our global teams of talented people bring you technical knowledge, business expe-rience and consistent methodologies, all built on our unwavering commitment to quality service — wherever you are and whatever tax services you need.

Effective compliance and open, transparent reporting are the foundations of a successful tax function. Tax strategies that align with the needs of your business and recognize the potential of change are crucial to sustainable growth. So we create highly networked teams who can advise on planning, compliance and reporting and maintain effective tax authority relationships — wherever you operate. You can access our tech-nical networks across the globe to work with you to reduce inefficiencies, mitigate risk and improve opportunity. Our 25,000 tax people, in over 135 countries, are committed to giving you the quality, consistency and customization you need to support your tax function. It’s how Ernst & Young makes a difference.

© 2010 EYGM Limited.All Rights Reserved.

Contents

Ernst & Young Global Tax contacts ............................................ 1

Albania ........................................................................................ 3

Angola ....................................................................................... 11

Argentina ................................................................................... 14

Armenia .................................................................................... 32

Aruba ........................................................................................ 44

Australia .................................................................................... 48

Austria (European Union member state) .................................. 62

Azerbaijan ................................................................................. 76

Bahamas .................................................................................... 79

Bahrain ...................................................................................... 83

Barbados ................................................................................... 86

Belarus ...................................................................................... 96

Belgium (European Union member state) .............................. 107

Bermuda .................................................................................. 122

Bolivia ..................................................................................... 129

Botswana ................................................................................. 135

Brazil ....................................................................................... 140

British Virgin Islands .............................................................. 151

Brunei Darussalam.................................................................. 155

Bulgaria (European Union member state) .............................. 158

Cambodia ................................................................................ 167

Cameroon ................................................................................ 173

Canada ..................................................................................... 179

Cayman Islands ....................................................................... 203

Chile ........................................................................................ 210

China, People’s Republic of .................................................... 219

Colombia ................................................................................. 233

Congo, Democratic Republic of ............................................. 242

Congo, Republic of ................................................................. 248

Costa Rica ............................................................................... 255

Côte d’Ivoire ........................................................................... 259

Croatia ..................................................................................... 268

Cyprus (European Union member state) ................................ 276

Czech Republic (European Union member state) .................. 282

Denmark (European Union member state) ............................. 293

Dominican Republic ............................................................... 302

Ecuador ................................................................................... 307

Egypt ....................................................................................... 313

El Salvador .............................................................................. 320

Equatorial Guinea ................................................................... 326

Estonia (European Union member state) ................................ 331

Ethiopia ................................................................................... 344

Fiji ........................................................................................... 350

Finland (European Union member state) ................................ 354

France (European Union member state) ................................. 364

Gabon ...................................................................................... 385

Georgia .................................................................................... 390

Germany (European Union member state) ............................. 400

Ghana ...................................................................................... 424

Greece (European Union member state) ................................ 431

Guam ....................................................................................... 443

Guatemala ............................................................................... 449

Guernsey, Channel Islands ...................................................... 455

Guinea ..................................................................................... 461

Honduras ................................................................................. 466

Hong Kong .............................................................................. 470

Hungary (European Union member state) .............................. 481

Iceland ..................................................................................... 492

India ........................................................................................ 501

Indonesia ................................................................................. 518

Iraq .......................................................................................... 530

Ireland, Republic of (European Union member state) ............ 533

Isle of Man .............................................................................. 552

Israel ........................................................................................ 561

Italy (European Union member state) .................................... 574

Jamaica .................................................................................... 586

Japan ....................................................................................... 594

Jersey, Channel Islands ........................................................... 608

Jordan ...................................................................................... 616

Kazakhstan .............................................................................. 619

Kenya ...................................................................................... 627

Korea (South) .......................................................................... 635

Kuwait ..................................................................................... 652

Laos ......................................................................................... 656

Latvia (European Union member state) ................................. 662

Lebanon ................................................................................... 670

Lesotho .................................................................................... 676

Libya ....................................................................................... 679

Liechtenstein ........................................................................... 683

Lithuania (European Union member state) ............................ 687

Luxembourg (European Union member state) ....................... 696

Macau ...................................................................................... 712

Macedonia, Former Yugoslav Republic of .............................. 721

Madagascar ............................................................................. 727

Malawi .................................................................................... 730

Malaysia .................................................................................. 736

Maldives .................................................................................. 749

Malta (European Union member state) .................................. 749

Mauritania ............................................................................... 762

Mauritius ................................................................................. 768

Mexico .................................................................................... 775

Moldova .................................................................................. 787

Montenegro ............................................................................. 792

Morocco .................................................................................. 796

Mozambique ........................................................................... 802

Namibia ................................................................................... 807

Netherlands (European Union member state) ........................ 813

Netherlands Antilles ................................................................ 831

New Zealand ........................................................................... 838

Nicaragua ................................................................................ 852

Nigeria ..................................................................................... 856

Northern Mariana Islands, Commonwealth of the ................. 864

Norway .................................................................................... 871

Oman ....................................................................................... 883

Pakistan ................................................................................... 887

Palestinian Authority ............................................................... 901

Panama .................................................................................... 904

Papua New Guinea .................................................................. 911

Paraguay .................................................................................. 919

Peru ......................................................................................... 922

Philippines............................................................................... 929

Poland (European Union member state) ................................. 951

Portugal (European Union member state) .............................. 959

Puerto Rico ............................................................................. 972

Qatar ........................................................................................ 984

Romania (European Union member state) ............................. 987

Russian Federation .................................................................. 994

Rwanda.................................................................................. 1002

Saudi Arabia .......................................................................... 1006

Senegal .................................................................................. 1012

Serbia .................................................................................... 1019

Seychelles ............................................................................. 1024

Singapore .............................................................................. 1026

Slovak Republic (European Union member state) ............... 1039

Slovenia (European Union member state) ............................ 1047

South Africa .......................................................................... 1058

Spain (European Union member state) ................................. 1071

Sri Lanka ............................................................................... 1089

Swaziland .............................................................................. 1101

Sweden (European Union member state) ............................. 1106

Switzerland ........................................................................... 1117

Syria ...................................................................................... 1131

Taiwan ................................................................................... 1138

Tanzania ................................................................................ 1153

Thailand ................................................................................ 1161

Trinidad and Tobago ............................................................. 1169

Tunisia ................................................................................... 1177

Turkey ................................................................................... 1183

Uganda .................................................................................. 1194

Ukraine .................................................................................. 1202

United Arab Emirates ........................................................... 1212

United Kingdom (European Union member state) ............... 1215

United States ......................................................................... 1242

U.S. Virgin Islands ................................................................ 1274

Uruguay ................................................................................. 1280

Uzbekistan ............................................................................. 1283

Venezuela .............................................................................. 1289

Vietnam ................................................................................. 1295

Zambia .................................................................................. 1307

Zimbabwe .............................................................................. 1310

Contacts for emerging markets ............................................. 1321

Foreign currencies ................................................................. 1325

1

Ernst & Young Global Tax contacts

London GMT

Ernst & Young Global +44 20 7980 0000Becket House Fax: +44 20 7980 0275 (Tax)1 Lambeth Palace RoadLondon SE1 7EUEngland

Ernst & Young Global TaxMark A. Weinberger, Washington, D.C.: +1 202 327 7720 Global Vice London: +44 20 7980 0455 Chairman – Tax Mobile: +1 202 744 1998 Efax: +1 866 851 6680 Fax: +1 202 327 6718 Email: mark.weinberger@ey.com

Area tax leadersAmericasKate J. Barton New York: +1 212 773 8762 Boston: +1 617 585 6820 Mobile: +1 617 230 1500 Efax: +1 866 854 9928 Fax: +1 212 773 5242 Email: kate.barton@ey.com

Asia PacificMichael Sanders +852 2629 3708 Mobile: +852 6852 5301 Efax: +852 3753 8808 Email: michael.sanders@hk.ey.com

Europe, Middle East, India and AfricaStephan Kuhn +41 58 286 44 26 Mobile: +41 58 289 44 26 Fax: +41 58 286 31 44 Email: stephan.kuhn@ch.ey.com

JapanKenji Amino +81 3 3506 2164 Mobile: +81 80 1394 9144 Fax: +81 3 3506 2412 Email: kenji.amino@jp.ey.com

Global Tax Center leadersPaul Antrobus, +420 225 335 811 Global Tax – People Leader Mobile: +420 731 627 015 Fax: +420 225 335 222 Email: paul.antrobus@cz.ey.comMark Goudsmit, +44 20 7980 0074 Global Leader – Tax Quality & Mobile: +31 6 2908 3420 Risk Management Fax: +44 20 7980 0275 Email: mark.goudsmit@nl.ey.comDavid Holtze, +44 20 7980 0019 Global Chief Operating Mobile: +44 7825 938 783 Officer – Tax Fax: +44 20 7980 0275 Email: david.holtze@uk.ey.com

2 ER N S T & YO U N G GL O BA L TA X C O N TAC T S

James D. Miller, +44 20 7951 4547 Director – Global Tax Finance Mobile: +44 7768 818 456 and Infrastructure Fax: +44 20 7980 0275 Email: jim.miller@uk.ey.com Aidan O’Carroll, +44 20 7980 0789 Global Leader – Tax Markets Mobile: +44 7768 911 551 Fax: +44 20 7980 0275 Email: aidan.o’carroll@uk.ey.comDiana Peltier, +1 202 327 7807 Director – Global Tax Communications Mobile: +1 301 848 8353 Efax: +1 866 210 0728 Fax: +1 202 327 5660 Email: diana.peltier@ey.com

Global Tax Subservice LinesBusiness Tax ServicesJim Hunter, +44 20 7980 0989 Global Director Mobile: +44 7717 158 404 Fax: +44 20 7980 0275 Email: jim.hunter@uk.ey.com

Human CapitalDina A. Pyron, New York: +1 212 773 7667 Global Director Houston: +1 713 750 8816 Mobile: +1 713 818 9847 Efax: +1 866 543 6963 Fax: +1 212 773 2722 Email: dina.pyron@ey.com

Indirect TaxPhilip Robinson, Mobile: +41 58 289 31 97 Global Director and Europe, Email: philip.robinson@uk.ey.com Middle East, India and Africa Indirect Tax Leader

International Tax ServicesJames J. Tobin, +1 212 773 6400 Global Director Mobile: +1 917 365 9466 Efax: +1 866 862 1314 Email: james.tobin@ey.com

Transaction TaxAidan Stokes, +44 20 7980 0046 Global Director and Europe, Mobile: +44 7769 672 519 Middle East, India and Africa Fax: +44 20 7980 0275 Director of Transaction Tax Email: aidan.stokes@uk.ey.com

Editor – The Global ExecutiveRonald Anes +1 732 516 4551 Efax: +1 866 863 4590 Email: ronald.anes@ey.com

3

Albania

(Country code 355)

Tirana GMT +1

Ernst & YoungDibra Str. “Observator” Building7th Floor1001 TiranaAlbania

Executive and immigration contactsDr. Alexandros Karakitis (4) 241-9571, Ext.111 Email: alexandros.karakitis@al.ey.comAnisa Jasini (4) 241-9575, Ext.131 Email: anisa.jasini@al.ey.com

Albania is in transition from a direct-command economy to a free-market economy, and new commercial laws, rules and regulations are being adopted. The government of Albania is proposing an economic restructur-ing of the country. As a result, many of the past laws, rules and regulations are being reviewed, modified or superseded. Because the tax and other legislation in Albania is still evolving and is subject to change and because of the lack of established tax precedents, it is difficult to predict the tax results of transactions with the same confidence that could be expected in many other European countries. For these reasons, readers should obtain updated information and seek professional advice before engaging in transactions.

A. Income taxWho is liable. Individuals who are resident in Albania are subject to tax on their worldwide income. Nonresidents are subject to tax on income derived from Albania sources only.

The following individuals are considered resident for tax pur-poses in Albania:• Individuals who have a permanent residence, family or vital

interests in Albania.• Albanian citizens serving in a consular, diplomatic or similar

position outside Albania.• Individuals who reside in Albania consecutively or nonconsec-

utively for at least 183 days during a tax year, regardless of their nationality or country of vital interests. The calculation of the residence period in Albania includes all of the days of physical presence, including holidays.

Residents of the countries with which Albania has entered into double tax treaties regarding income and capital may benefit from the provisions in such treaties.

Income subject to tax. Individuals are subject to tax on the fol-lowing types of income:• Employment income• Self-employment income• Dividends• Interest from bank deposits and securities• Royalties• Income from rentals and leases of real property and loans

4 AL BA N I A

• Income derived from transfers of ownership rights over immov-able property

• Income derived from transfers of quotas and shares• Income derived from gambling and other games of chance• Other income

These categories of income are described below.

Employment income. Employed persons are subject to income tax on remuneration and all benefits received from employment. Employment income includes the following:• Salaries, wages, allowances, bonuses, and other remuneration

and benefits granted for services rendered in a public office or in private employment

• Directors’ fees

Self-employment income. Self-employed individuals must regis-ter as individuals with the Commercial Register for tax purposes. Income derived by individuals from independent professional services and self-employment activities that generate more than ALL 2 million are subject to tax at a rate of 10%. The tax base equals the difference between total gross income and total deductible expenses.

Small businesses that generate annual turnover of up to ALL 2 million are subject to a fixed tax obligation that varies according to the type of business activity and the location of the business. The following table provides the annual small business tax rates for businesses located in the municipalities of Durres and Tirana.

Type of activity Tax (ALL)Retail sales 45,000Wholesale 45,000Production 33,000Services 25,000Independent professional services and self-employment 38,000Mobile sales (sales by ambulatory merchants) 8,000

Dividends. Dividends received by individual shareholders or partners in commercial companies are subject to tax.

Amounts received for decreases in the total of participation quo-tas or capital withdrawals by partners or owners of initial capital are considered dividends received and are taxed to the extent that the amounts are paid out of the company’s capitalized profits and not from contributions in cash or in kind by the owners.

Interest from bank deposits or securities. Bank interest and inter-est on securities, other than interest generated from government treasury bills or other securities, issued before the law “On income tax” entered into force in 1999, are included in taxable income.

Royalties. Royalties (intellectual ownership payments) are con-sidered to be income generated from the use of, or the right to use, literature, artistic or scientific works, including movies, tapes, radio records, patents, trademarks, sketches or models, designs, secret formulas, technological processes and industrial, commer-cial or scientific information.

Income from rentals and leases of real property and loans. Income from rentals and leases of real property and loans includes any

AL BA N I A 5

periodic compensation in cash or in kind that an individual gen-erates from the leasing of real estate and lending of replaceable items (for example, funds).

Income derived from transfers of ownership rights over immovable property. The taxation of income derived from transfers of owner-ship rights over immovable property is discussed in Capital gains.

Income derived from transfers of quotas or shares. The taxation of income derived from transfers of participation quotas or capi-tal shares is discussed in Capital gains.

Income derived from gambling and other games of chance. The payer of income from gambling and other games of chance must with hold a 10% tax and remit it to the tax authorities within 24 hours after making the payment.

Other income. Other forms of income include all types of income that are not identified in the categories mentioned above. This category includes the following:• Income from sponsoring (for example, individuals not regis-

tered with tax bodies receive sponsoring from different sources and use the sponsorship for artistic or sports activities).

• Income from professional activities, including teaching, train-ing and publishing articles in newspapers if the beneficiary is not registered with tax bodies and if such activities are of a temporary or secondary character.

• Income realized from collecting and selling metals.• Cash contributions to share capital. Such contributions are tax-

able if they have not yet been taxed or if no sufficient evidence exists that they originate from sources that are excluded from the scope of Albanian taxation or that they are exempt from tax for other reasons.

Exempt income. The following types of income are exempt from personal income tax:• Income received from obligatory schemes for social and health

insurance and allowances for families or individuals with no or low income.

• Awards up to the limit specified in the law, regardless of the source of the payment.

• Allowances received for diseases or disasters, up to 20% of the annual employment income earned by the recipient of the allowances.

• Benefits in cash or in kind granted to former landowners as remuneration for the dispossession required by the government for the public interest. This exemption must be proven by legal documentation explaining the nature of the income.

• Compensation for damages received from insurance companies.• Income in kind, such as food (antidotal), received from busi-

nesses that are allowed to pay such income under the law.• Income excluded by international agreements approved by the

Albanian parliament.• Indemnities received by former political prisoners.

Taxation of employer-provided stock options. No specific rules in Albania govern the tax treatment of employer-provided stock options. Stock options are subject to personal income tax at the moment of exercise.

6 AL BA N I A

Capital gainsTransfers of ownership rights over immovable property. Capital gains derived from disposals of real estate are subject to tax. The tax base equals the amount by which the sale price exceeds the acquisition cost. For real estate transfers, the sale price taken into account may not be less than the “reference price” for such property. For this purpose, the “reference price” is the objective value per meter in the relevant area, as indicated in the refer-ence table published by the Albanian Institute of Statistics for the main Albanian cities.

Transfers of quotas or shares. Capital gains derived from trans-fers of participation quotas or capital shares include income from sales of quotas owned by partners in businesses or partnerships, income from sales of shares and income from sales or liquida-tions of businesses. The tax base is equal to the following:• Shares: difference between the sales value of the shares and

nominal value or the purchase value• Capital participation quotas: difference between the sales value

and nominal value or the purchase value• Liquidation: difference between the sales value or liquidation

value of a business and book value

Capital losses. Capital losses are not deductible for tax purposes.

Deductible expenses. In general, the gross amount of income is subject to tax and deductions do not apply.

RatesEmployment income. For 2010, wages, salaries and compensation relating to employment are taxed at the rates set forth in the fol-lowing table.

Monthly taxable incomeExceeding Not exceeding ALL ALL Rate 0 10,000 0% 10,000 30,000 10% of amount above ALL 10,000 30,000 — 10% of total taxable income

The tax is withheld by the employer and the employee is not required to file a tax return reporting this income.

Other types of income. Albanian resident entities, government institutions and other specified entities must withhold a 10% tax from all other types of income. This tax is considered to be a final tax. For a discussion of the types of income subject to tax in Albania, see Income subject to tax. An individual must file a personal income tax return for any income that has not been taxed at source, including self-employment income, income from rentals and leases of real property and loans, royalties and foreign-source income.

B. Other taxesAnnual Real Estate Tax. Annual Real Estate Tax (ARET) is imposed annually on all completed buildings based on the area in square meters of the building for each floor of the building above and below the ground. The annual tax ranges from ALL 5 to ALL

AL BA N I A 7

200 per square meter, depending on the municipality where the property is located. The annual tax is ALL 200 per square meter for buildings located in the municipalities of Durres and Tirana.

Tax on hotel accommodation. The tax on hotel accommodation equals 5% of the accommodation price and is payable in the municipality or the commune by the fifth day of the following month.

Annual registration tax on vehicles. Annual registration tax on vehicles is levied at a rate of ALL 600 to ALL 8,000 per year.

Tax on environment and garbage collection. The tax on environ-ment and garbage collection is determined at the municipality level. It is payable by individuals and legal entities residing or performing economic activity in the municipality.

C. Social securityEmployers and employees contribute to a social security fund a percentage over the calculated monthly salary. The total contribu-tion is 27.9%, of which 16.7% is paid by the employer, and 11.2% is paid by the employee. The contribution consists of a social security contribution of 24.5% and a health security con-tribution of 3.4%. The contribution is calculated on the monthly salary, from a minimum amount of ALL 18,000 to a maximum amount of ALL 80,600. The contribution must be paid to the tax authorities by the 20th day of the following month.

Self-employed persons must pay a contribution of 30% calculat-ed on the amount exceeding the minimum amount of salary, which is ALL 16,120.

D. Filing and payment proceduresThe tax year in Albania is the calendar year.

Employers must withhold personal income tax from wages and compensation paid, and they must pay the withholding tax to the tax administration by the 20th day of the following month. Employers must maintain records of payments in accordance with instructions issued by the Ministry of Finance.

Individuals earning income subject to personal income tax during the tax year must file a declaration with the tax administration of the relevant jurisdiction by 31 January of the following year, unless the tax liability has been settled through tax withholding.

E. Double tax relief and tax treatiesTax treaties. Albania has entered into double tax treaties with the following jurisdictions.

Austria Italy PolandBelgium Latvia RomaniaBulgaria Lithuania RussianCroatia Macedonia FederationCzech Republic Malaysia SloveniaEgypt Malta SwedenGermany Moldova SwitzerlandGreece Netherlands TurkeyHungary Norway

8 AL BA N I A

Albania has signed a tax treaty with Ukraine, but this treaty has not yet entered into force.

Albania has signed tax treaties with Bosnia-Herzegovina, Estonia, India, Kosovo, Kuwait and Luxembourg, but these treaties have not yet been ratified.

Albania is negotiating tax treaties with Iceland, Iran, Ireland, Lebanon and Serbia.

Foreign tax credit. Resident taxpayers may credit the foreign income tax paid in other countries on the income realized in such countries. The amount of the foreign tax credit may not exceed the amount of tax calculated for Albania.

F. Entry visasAlbania issues the following temporary visas:• Tourist visas, which are issued to foreign tourists who visit

Albania for tourism or similar purposes. These visas are issued for up to six months. Holders of tourist visas may not undertake employment or engage in any profit-seeking activities.

• Study visas, which are issued to foreigners who intend to attend courses or universities in Albania. The term of the visa depends on the studies.

• Work visas, which are issued to foreigners who will engage in business activities in Albania.

• Medical visas, which are issued to foreigners who will perform medical visits or seek medical treatment in Albania.

• Transit visas, which permit a visit of 48 hours or a transit pas-sage. Holders of transit visas may not undertake employment or engage in any profit-seeking activities.

• Visas for 72 hours, which are issued to foreign citizens who are required to make a prior application for a visa but who, for a valid reason, cannot present a visa to customs. Within the 72-hour period, foreign citizens may make an application to obtain another type of visa.

G. Work permitsThe Labor and Social Issues Ministry is in charge of the policies for the employment of foreign citizens. Work permits are issued to foreigners by local institutions (labor office, sector of immigra-tion) and the Directory of Immigration in Labor and Social Issues.

Various types of work permits are issued. Foreigners may apply for a type A/P work permit if they have legally entered Albania, fall in the list eligible for this type of visa and have regular employment contracts. To obtain a Type A/P work permit, the following documents must be submitted:• Application form• Passport (expiration date at least three months after the visa

expiration date)• Copy of passport information regarding generalities and other

important information• Individual employment contract or secondment contract between

the foreign entity, the local entity and the individual employee• If the above documents are filed by an authorized party instead

of the individual, an authorization signed by the individual• University degree certificate

AL BA N I A 9

• Five passport-size pictures• Receipt for fee payment (ALL 6,000)

H. Residence permitsThe duration of a residence permit may be three months, six months, one year, five years or permanent. Residence permits with the first three periods of duration can be renewed up to three consecutive times. Foreigners may apply for a five-year residence permit if they have had a legal residence in Albania for two con-secutive years and have a permanent activity. To obtain a resi-dence permit, the following documentation must be submitted:• Application form• Passport (valid for at least three months after the expiration date

of the visa)• Copy of passport information regarding generalities and other

important information• Criminal Records Clearance of the individual extracted in the

last six months• Rent or purchase contract for an apartment or house in Albania• Personal/Family Certificate translated in Albanian, released in

the last six months• Two passport-size pictures• Declaration from the host or employer about the purpose of stay• Photocopy of the work permit or the professional license• Medical report (for citizens of and coming from countries

affected by epidemics)• Fee payment receipt

The amount of the application fee depends on the duration of the resident permit. The following are the amounts of the fee.

Duration of permit Fee3 months ALL 5,000 + document charge6 months ALL 5,000 + document charge 1 year ALL 10,000 + document charge2 years ALL 15,000 + document chargePermanent ALL 25,000 + document charge

I. Personal and family considerationsMarital property regime. A court may require one of the ex-spouses to pay a contribution to the other spouse to compensate for the inequality of the divorce. The court decides whether the contribution will be a lump-sum amount or a periodic amount and how the contribution will be paid. The contribution is deter-mined according to the needs of the beneficiary ex-spouse and the income of the other spouse. The duration of the compensation is also determined by the court in accordance with the needs of the ex-spouse.

In making the above determination, the court takes into consider-ation the following:• Age and medical condition of the ex-spouses• Time spent and expenses for children’s education• Professional education of the ex-spouses• Current and future rights of the ex-spouses• Capital or income of the ex-spouses after the divorce

10 AL BA N I A

If the house is the property of one of the ex-spouses and if the other ex-spouse does not own a house, the court may decide to permit the usage of the house by the other ex-spouse in the fol-lowing cases:• The other ex-spouse has custody of the children.• The divorce is requested by the ex-spouse who is the owner of

the house.

The court decides the duration of usage and the rent to be paid to the owner of the house based on the ex-spouse’s income. If the other ex-spouse remarries, he or she loses the right to use the house.

Forced heirship. Albanian succession law provides for forced heir-ship for children under 18, and disabled dependants.

Drivers’ licenses. Expatriates with valid residence permits may drive legally in Albania with their home-country drivers’ licenses if their home-country licenses are valid and if they have official translations of their licenses into Albanian or English.

Appendix 1: Taxability of income items Not Taxable taxable CommentsCompensationBase salary X — (a)Business travel expenses — X (b)Travel allowances — X (c)Directors’ fees X — —

Other itemsSelf-employment X — —Personal ordinary income (interest and dividends) X — —Capital gain from sale of immovable properties X — —Capital gains X — —Royalties X — —

(a) Employment income includes the basic wage and all the permanent increments added to the basic wage, including a seniority bonus, and additional payments and allowances because of a strenuous job, distance from the workplace or special nature of the work or services, as well as other allowances. Further allowances include all income or remuneration arising from the individual’s employment. All further allowances are taxed in the respective month in which they are added to the salary.

(b) Business travel expenses must be substantiated by the relevant service days inside or outside Albania and must be justified by the relevant travel docu-ments, such as transport tickets and passports (showing exit and entry stamps from Albania).

(c) For travel within Albania, travel allowances include per diems not exceeding the limit of ALL 3,000 per whole service days and ALL 1,000 per half-service days. For travel outside Albania, the per diems may not exceed €60 per whole service days and €30 per half-service days.

Appendix 2: Sample tax calculationThe following is a sample tax calculation for a month in 2010.

ALLCalculation of taxable incomeMonthly gross remuneration 70,000Taxable income 70,000

AL BA N I A – AN G O L A 11

ALLCalculation of taxWithholding tax (income tax): (ALL 70,000 at 10%) 7,000Social security and health insurance premium for the employee (11.2% of ALL 70,000) 7,840Total of tax and social security premium 14,840Monthly net salary: (ALL 70,000 – ALL 14,840) 55,160

Angola

(Country code 244)

Luanda GMT +1

Ernst & YoungAvenida 4 de Fevereiro95 – 2nd FloorLuandaAngola

Executive contactsAntónio Neves +351 217 912 249 (resident in Lisbon) Fax: +351 217 957 592 Email: antonio.neves@pt.ey.comFilipa Pereira +351 217 912 041 (resident in Lisbon) Fax: +351 217 957 592 Email: filipa.pereira@pt.ey.com

A. Income taxWho is liable. Individuals receiving work-related income and/or business and professional income in Angola are subject to tax if the compensation is paid by an Angolan entity or if the respective cost of such income is allocated to an entity with a head office, residence or permanent establishment in Angola. Angolan law does not provide criteria for tax residence purposes to determine who is liable for tax in Angola.

Income subject to taxEmployment income. All employment income is subject to tax, including wages, salaries, directors’ fees, leave payments, fees, gratuities, bonuses, and premiums or allowances (for productivity or reaching certain goals), paid in cash or in kind. Allowances for travel and certain other expenses (for example, costs incurred for meals while representing the employer) are taxable to the extent that the amount paid to the employee exceeds the limits applica-ble to civil servants.

Self-employment income. Self-employed individuals are taxed on actual profit, which is gross revenue less deductible expenses (see Business deductions). In certain cases, business income is subject to Industrial Tax (corporate income tax).

Investment income. Income derived from the use of capital is gen er ally subject to withholding tax. Interest on loans, including

12 AN G O L A

share holders’ loans, and late payment charges are taxed at a rate of 15%. Dividends, interest on bonds and royalties are taxed at a rate of 10%.

DeductionsDeductible expenses. No deductions from employment income are allowed, except for social security contributions.

Business deductions. The following expenses are deductible if prop erly documented:• Rent paid for business premises• Wages (subject to a maximum of wages paid to three employees),

commissions and fees paid for services• Water, gas, telephone and electricity expenses• Insurance premiums• Other necessary expenses required to carry out the taxpayer’s

business• Depreciation of the business premises

The total deduction for the above expenses is limited to 30% of the taxpayer’s total income if the taxpayer does not have an organized accounting regime.

Rates. Income tax rates applicable to taxable employment income derived by residents and nonresidents are set forth in the follow-ing table.

Taxable income Tax on lower Rate onExceeding Not exceeding amount excess Kz. Kz. Kz. % 0 25,000 0 0 25,000 30,000 0 5 30,000 35,000 250 6 35,000 40,000 550 7 40,000 45,000 900 8 45,000 50,000 1,300 9 50,000 70,000 1,750 10 70,000 90,000 3,750 11 90,000 110,000 5,950 12 110,000 140,000 8,350 13 140,000 170,000 12,250 14 170,000 200,000 16,450 15 200,000 230,000 20,950 16 230,000 — 25,750 17

Individual business owners receiving salary income are taxed at a flat rate of 20%.

Income from self-employment is taxed at a rate of 15%.

Capital gains and losses. A separate capital gains tax is not levied in Angola; however, capital gains derived from the disposal of business assets of a self-employed individual are included in operational profits and taxed at the regular Industrial Tax (corpo-rate income tax) rate of 35%.

Capital losses may not be carried forward or back. However, under the Industrial Tax, tax losses may be carried forward for three years.

AN G O L A 13

B. Other taxesInheritance and gift tax. Inheritance and gift tax is payable by heirs and donees. This tax is levied on gratuitous transfers of movable and immovable assets and rights located or transferred in Angola. Tax rates range from 10% to 30%, depending on the value of the estate or the gift and on the relationship of the heir or donee to the deceased person or donor.

Property tax. Property tax is levied at a rate of 30% on the offi-cial assessment value of real property, which is determined based on charged or deemed rent.

Property transfer tax. Property transfer tax is levied at rates rang-ing from 2% to 10% with respect to transfers of immovable property, including long-term leases (20 years or more).

C. Social securitySalaries and additional remuneration specified under law are subject to social security contributions. No ceiling applies to the amount of remuneration subject to social security contribu-tions. The rates of the contributions are 8% for employers and 3% for employees.

Employees working transitorily in Angola are not required to make social security contributions if they can prove that they are covered by the social security system in another country.

Self-employed persons are subject to social security contribu-tions based on a predefined monthly notional salary. The rate of the contributions is 8%, but it may be increased to 11% if addi-tional benefits are covered.

D. Tax filing and payment proceduresThe fiscal year in Angola is the calendar year.

Self-employed individuals must file returns (Form M/1) in Janu-ary following the tax year-end and are notified of their final tax liability. Penalties are imposed for failure to file tax returns and other required documents. Self-employed persons who fail to file their tax returns during January are subject to a fine of UCF 40 (the UCF is a unit fixed periodically by the Ministry of Finance, which is used to determine the amount of tax penalties). Employ-ers who fail to file withholding forms are subject to a fine equal to the amount of the tax underpaid for each employee. Other fines may also apply, depending on the type of noncompliance.

Income taxes on employees are withheld by the employer, and em ployees are not required to file returns.

Tax on income from capital is generally withheld by the payer. For loan interest paid to a resident, however, the recipient is responsible for paying tax at a rate of 15% on the gross amount received.

E. Tax treatiesAngola has not entered into any double tax treaties, but treaties are being negotiated.

14

Argentina

(Country code 54)

Buenos Aires GMT -3

Ernst & Young – Pistrelli, Henry Martin y Asociados SRL25 de Mayo 487Fourth and Fifth FloorsC1002ABI Buenos AiresArgentina

Executive and immigration contactsFlorencia Fernández (11) 4318-1681 Fax: (11) 4318-1777 Email: florencia.fernandez@ar.ey.comJavier Sabin (11) 4318-1681 Fax: (11) 4318-1777 Email: javier.sabin@ar.ey.comEduardo Perelli (11) 4510-2274 Fax: (11) 4318-1777 Email: eduardo.perelli@ar.ey.comErnesto Marzik (11) 4318-1681 Fax: (11) 4318-1777 Email: ernesto.marzik@ar.ey.com

A. Income taxWho is liable. Residents are subject to tax on worldwide income. Nonresidents are taxed on Argentine-source income only.

The following individuals are deemed to be resident in Argentina:• Native and naturalized Argentine citizens• Foreign individuals who are granted permanent residence in

Argentina• Foreign individuals who remain in the country under temporary

authorization for a period of 12 months or longer

Individuals in the third category who have not been granted per-manent residence are deemed to be nonresident if they can prove that they do not intend to stay permanently in Argentina.

Foreign individuals who can prove that they are in Argentina because of their employment, and who remain in the country for a period not exceeding five years, are not considered to be resi-dent in Argentina. This rule also applies to members of the indi-vidual’s family who accompany the individual to Argentina.

Income subject to tax. The taxability of various types of income is discussed below. For a table outlining the taxability of income items, see Appendix 1.

Employment income. Taxable income from employment includes all salaries, regardless of the taxpayer’s nationality or the place where the compensation is paid or the contract is concluded. In general, taxable compensation also includes most employer-paid items, except moving expenses.

Educational allowances provided by employers to their local or expatriate employees’ children who are 18 years old or under are taxable for income tax and social security purposes.

AR G E N T I NA 15

Self-employment income. Self-employment and business income is taxable, regardless of the recipient’s nationality, the place of payment or where the contract was concluded.

Investment income. In general, dividends from Argentine corpo-rations paid to residents or nonresidents are not taxable. How-ever, if a company pays a dividend in excess of its accumulated taxable income, the excess is subject to a final withholding tax at a rate of 35%. Dividends from foreign corporations paid to resi-dents are taxable. Royalties and income derived from renting real property are taxed as ordinary income. Interest is taxed as ordinary income, except interest from certain bank deposits in Argentina and Argentine government bonds, which is tax-exempt. Interest from bank deposits paid to nonresidents is exempt from Argentine tax only if the income is also exempt from foreign tax.

Directors’ fees. Directors’ fees are taxed as self-employment in come to the extent that they are deducted by the payer company (allowable up to the greater of 25% of book profit or ARS 12,500 per director per year). The portion of fees not de ductible at the corporate level is not taxable to the director if the amount of the company’s income tax increases by an amount equal to the tax attributable to the directors’ fees. Directors’ fees paid by Argen-tine companies are considered Argentine-source income, regard-less of where the services are performed.

Taxation of employer-provided stock options. Stock options grant-ed to employees are deemed to be payments in kind and are therefore subject to income tax and social security withholding. Taxable income is recognized at the time the option is exercised in an amount equal to the difference between the strike price and the fair market value of the stock on the date of exercise.

Capital gains. In general, capital gains are exempt from income tax, with certain specific exceptions.

DeductionsDeductible expenses. For purposes of computing tax to be with-held from an employee’s salary, employers may deduct certain allowable expenses, including the following:• Mandatory social security contributions• Medical insurance payments for employees and their families,

with certain limitations• 40% of invoiced medical expenses up to a maximum of 5% of

the taxpayer’s annual net income• Expenses incurred by traveling salespeople based on estimates

established by the tax authorities• Donations to the government and certain charitable or non-

profit institutions, up to 5% of net taxable income• Burial expenses, up to ARS 996.23 annually• Life insurance premiums, up to ARS 996.23 annually• Mortgage interest, up to ARS 20,000 annually, for the purchase

of a dwelling destined to be a permanent abode• Tax on Bank Debits and Credits, subject to certain limitations• Contributions made to Mutual Guarantee Companies (SGRs;

special companies that guarantee loans)• Compensation and employer contributions related to domestic

help personnel, up to ARS 10,800 annually

16 AR G E N T I NA

Self-employed individuals may deduct expenses incurred in pro-ducing income, in addition to the expenses listed above.

Personal deductions and allowances. Employed and self-employed individuals are entitled to standard deductions in amounts estab-lished by law. The amounts for 2010 are ARS 12,000 for a spouse, ARS 6,000 for each child and ARS 4,500 for each other dependant. To qualify, dependants must reside in Argentina for more than six months in the tax year and may not have income in excess of ARS 10,800.

A deduction of ARS 10,800 is granted to taxpayers who are resi-dent in Argentina for longer than six months during the calendar year.

A special deduction is available against compensation derived from personal services. The annual amount is ARS 51,840 for employ-ees and ARS 10,800 for self-employed persons.

Nonresidents residing in Argentina longer than six months in a calendar year may claim the deductible expenses actually in curred and exemptions available to residents.

Rates. The progressive tax rates applicable to Argentine residents for 2010 range from 9% to 35%.

The following table presents the 2010 individual income tax rates.

Taxable income Tax on lower Rate on Exceeding Not exceeding amount excess ARS ARS ARS % 0 10,000 0 9 10,000 20,000 900 14 20,000 30,000 2,300 19 30,000 60,000 4,200 23 60,000 90,000 11,100 27 90,000 120,000 19,200 31 120,000 — 28,500 35

Nonresidents residing tem porar ily in Argentina, that is, for six months or less, are subject to final withholding tax. A standard deduction of 30% of compensation is allowed for expenses in -curred in earning income. The re main ing 70% of compensation is taxed at a flat rate of 35%, with no other allowable deductions or ex emptions, resulting in an effective withholding tax rate of 24.5%.

For a sample tax calculation, see Appendix 2.

Relief for losses. Business losses of self-employed persons may be carried forward for five years. Foreign-source business losses may offset foreign-source income only.

B. Other taxesTransfer tax. Sales of real estate are subject to transfer tax at a rate of 1.5% on the sale price.

Personal assets tax. Individuals with total assets subject to tax of up to ARS 305,000 are exempt from the personal assets tax. Individuals domiciled in Argentina with assets totaling more than ARS 305,000 are required to pay the personal assets tax for 2010 at the rates listed in the following table.

AR G E N T I NA 17

Total value of taxable assets Exceeding Not exceeding Rate ARS ARS % 305,000 750,000 0.50 750,000 2,000,000 0.75 2,000,000 5,000,000 1.00 5,000,000 — 1.25

Under the Substitute Taxpayer Regime, individuals domiciled in foreign countries are subject to personal tax on Argentine assets only at a rate of 1.25%. In this case, the minimum of ARS 305,000 does not apply.

Liabilities, other than those incurred for the purchase, construc-tion or improvement of a taxpayer’s home, are not deductible for purposes of the personal assets tax. A tax credit is allowed for similar taxes paid abroad.

Expatriates residing in Argentina on work assignments for a period not exceeding five years are considered to be domiciled in Argentina but they are taxed only on personal assets located in Argentina.

C. Social securityContributions. Social security contributions are paid by employ-ees, employers and self-employed persons.

Employees. Employees’ social security contributions are with-held from their monthly salary.

Employees make contributions to the Pension Fund at a rate of 11%, to the Retiree’s Fund at a rate of 3% and to the health-care system at a rate of 3%. The maximum monthly tax base for the calculation of these contributions is ARS 9,351.30 for January 2010 and February 2010, ARS 10,119.08 from March 2010 through August 2010 and ARS 11,829.21 from September 2010 through December 2010.

Monthly salary that exceeds the maximum tax base is not subject to contributions. For this purpose, a year comprises 13 months.

Employers. Employers pay social security contributions at a rate of 21% or 17%, depending on the company’s activity and turn-over (amount of sales). A 6% contribution for medical care is required in addition to the social security contributions. The tax base for employer social security contributions and health care contributions is not capped.

Other. No employee or employer social security taxes are payable with respect to directors’ fees. However, a director must pay fixed monthly amounts that are allocated to the social security’s Self-Employed System.

The social security tax law provides an exemption for all profes-sionals, researchers, scientists, and technicians who are contracted outside of Argentina to render services in Argentina for a period of not more than two years. The individuals must have a tempo-rary residence, be covered by the social security system of their countries, and provide evidence of their technical qualifications as well as of their coverage for death, disability and old age in their home countries or countries of residence. This exemption is available only once and, after being granted, it is in force from the

18 AR G E N T I NA

date of the application for as long as the conditions for the exemption are met.

Totalization agreements. Social security taxes for nonresidents are collected as outlined above. However, both the employer and the nonresident employee may be exempt from contributions to the Argentine pension fund if certain conditions are met.

To provide relief from double social security taxes and to assure benefit coverage, Argentina has entered into totalization agree-ments with the following countries.

Brazil Paraguay Southern Common MarketChile (a) Peru (b) (Mercado Común del Sur, Colombia (b) Portugal or MERCOSUR) countriesGreece Slovenia (b) SpainItaly Uruguay

(a) This treaty is partially in force.(b) This treaty is not yet in force.

D. Tax filing and payment proceduresThe tax year for individual taxpayers is the calendar year. Tax returns must be filed by mid-April (between 20 April and 24 April, depending on the taxpayer’s registration number) of the following year unless the taxpayer’s only income is from employee com-pensation. No extensions to file tax returns are allowed.

For the 2010 fiscal year, national and foreign employees must file an income and personal assets tax return for informational purposes if their gross compensation exceeds ARS 144,000 per year. If their compensation is higher than ARS 96,000, but lower than ARS 144,000, national and foreign employees must file tax returns reporting only their assets as of 31 December of the cur-rent year with the tax authorities.

Self-employed taxpayers must register with the tax authorities. Tax returns are filed annually in April, declaring earnings for the previous calendar year.

Individuals with nonwage income, including self-employment in come, must make advance tax payments bimonthly from June to February, based on the previous year’s tax. Under a withhold-ing system for payments to resident individuals, withholding is im pos ed at various rates on income exceeding a minimum thresh-old. Amounts withheld are treated as advance payments.

Advance payments are also required for purposes of the personal assets tax (see Section B).

Married couples are taxed jointly (the husband reports the assets); however, a wife is taxed separately on income derived from per-sonal activities (including em ployment, self-employment and busi-ness), on assets acquired be fore marriage and on assets acquired during marriage with income earned from personal activities.

Nonresidents subject to the 35% withholding tax are not required to file tax returns.

E. Double tax relief and tax treatiesResident taxpayers are entitled to a tax credit for income taxes paid abroad, up to the increase in Argentine tax resulting from the inclusion of the foreign-source income.

AR G E N T I NA 19

Argentina has entered into double tax treaties with the following countries.

Australia Finland RussianBelgium France FederationBolivia Germany SpainBrazil Italy SwedenCanada Netherlands SwitzerlandChile Norway United KingdomDenmark

F. Types of visasGeneral immigration law allows foreign nationals to enter and stay in Argentina with transitory business visas, or with tempo-rary and permanent residence permits and visas.

The transitory work visa is seldom useful for international execu-tives because holders of this type of permit may carry out remu-nerated activities in exceptional situations only.

G. Transitory business visasTransitory business visas are issued to foreign nationals who were invited by a local commercial entity established in Argentina and will engage in the habitual performance of business, invest-ment or market research in Argentina. Business visas do not authorize their holders to work in Argentina.

A business visa allows multiple entries for a short term. In gen-eral, the maximum length of each stay is three months, which may be extended for another three months. However, nationals from Grenada and Hong Kong holding British passports are admitted for a maximum 30-day period, which may be extended for another 30 days. Chinese citizens holding passports from the Hong Kong Special Administrative Region (SAR) may be allowed to remain up to 90 days for business reasons in Argentina and are not required to apply for a business visa.

Nationals from Australia, Barbados, Belgium, Brazil, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Guyana, the Hong Kong SAR, Hungary, Iceland, Ireland, Japan, Korea (South), Latvia, Lithuania, Malaysia, the Netherlands, New Zealand, Nicaragua, Norway, Poland, Puerto Rico, Romania, the Russian Federation, San Cristobal, Santa Lucia, San Vicente, Singapore, Slovenia, South Africa, Sweden, Thailand, Trinidad and Tobago, Turkey, the United Kingdom and the United States do not need a business visa to enter Argentina if they expressly inform the immigration authorities that they are businesspersons.

Agreements signed with India and Korea (South) establish a spe-cial immigration regime for business visas. Individuals from Korea (South) may enter the country for a 3-year period as business visitors and may stay in the country for 30 days during each trip. Individuals from India may stay in the country about 90 days dur-ing each trip for the duration of a 5-year period. In both of the above cases, multiple entrances are allowed during the validity term if the 30- or 90-day limits are observed.

Citizens from Brazil, France, Iceland, Japan and the United Kingdom are not required to obtain a visa to enter Argen tina for less than 90 days for the purpose of developing technical activities in the country.

20 AR G E N T I NA

Under an agreement between Argentina and Brazil, special immi-gration treatment is granted to businesspersons, professionals and specialized technicians (skilled workers who have completed high school or a third-level education).

Brazilian citizens qualifying under the agreement between Argen-tina and Brazil may enter Argentina without obtaining a visa if they remain in Argentina for less than 90 days, regardless of whether they receive remuneration in Argentina for the perfor-mance of the duties mentioned above. The term can be renewed once for an additional 90 days. Technicians may request exten-sions if they remain employed by the Brazilian entity.

To obtain the visa, nationals from other countries must request an authorization from the National Immigration Board (NIB) before attending the consular interview. The NIB takes approximately 20 to 30 days to issue an entry permit for businesspersons after receipt of a letter from a verified company or institution inviting the applicant to Argentina.

When entering Argentina as tourists or businesspersons, nation-als from specified countries must pay a reciprocity fee, which is identical to the fee that Argentine citizens pay when entering into the corresponding countries. The payment of this fee does not result in the grant of a tourist visa to the nationals of these coun-tries because such individuals are exempt from the visa require-ments for tourists and businesspersons (except for Canadian businesspersons). The following are the reciprocity fees:• Australian nationals: US$100 (one entry is allowed)• Canadian nationals: US$70 (one entry is allowed)• U.S. nationals: US$140 (paid only once; the fee has a 10-year

validity period and multiple entries are allowed)

H. Residence permitsUnder the immigration system in Argentina, foreign individuals may be granted the following categories of legal residence in Argentina:• Temporary residence• Temporary visa• Permanent residence

Temporary residence permits and visas. Persons in the following categories may be granted temporary residence permits:• Parents, spouses or single sons or daughters (younger than 21

years of age or handicapped) of temporary residents (or of applicants for temporary residence status)

• Clergy of officially recognized religions• Students entering the country with the intention of carrying out

studies at private or state-run, officially recognized establish-ments (except primary schools)

• Individuals requested by local companies under employment agreements

• Artists or athletes required by financially sound persons to carry out specialized activities

• Investors• Proprietors or pensioners• Natives of countries with which Argentina has established spe-

cial immigration relationships (for example, Chile)

AR G E N T I NA 21

• Persons of special importance in the cultural, social, economic, scientific or political fields, or whose presence is considered by the Ministry of the Interior to be in the interests of Argentina

• Foreign nationals from countries that, for geographical, histori-cal, economic or health reasons, are deemed to deserve special treatment

Persons in the following categories may be granted temporary visas:• Parents, spouses or single sons or daughters (younger than 21

years of age or handicapped) of temporary residents (or of applicants for temporary residence status)

• Clergy of officially recognized religions• Students entering the country with the intention of carrying out

studies at private or state-run, officially recognized establish-ments (except primary schools)

• Individuals requested by local companies under employment agreements

• Artists or athletes required by financially sound persons to carry out specialized activities

• Entrepreneurs or businesspersons• Foreign companies’ representatives (according to the NIB, a

foreign company’s representative is a person who enters into Argentina holding a certificate issued by the foreign company stating his or her appointment as attorney-in-fact by the foreign company)

• Investors• Proprietors or pensioners• Natives of countries with which Argentina has established spe-

cial immigration relationships (for example, Chile)

The temporary residence permit is normally granted for a one-year period (except for temporary residence under the MERCOSUR agreement, which is granted for up to a two-year period). It may be renewed for an additional identical term. Alternatively, perma-nent residence may be required after the first period of temporary residence elapses (in the case of residence under the MERCOSUR agreement) or after an individual holding a temporary residence permit or visa remains in Argentina for at least three years. The temporary visa is normally granted for a one-year period and it may be renewed for an additional one-year period without limita-tion. Temporary residents may work in the country while the temporary work residence permits or visas are in force.

Permanent residence permits. Foreign nationals intending to settle permanently in Argentina may apply for permanent residence per-mits if they meet all legal requirements. The NIB and Argentine consulates currently grant permanent residence permits only to foreign nationals who are in one of the following categories:• Parents, spouses or children of Argentine citizens who were

born in Argentina, or who have exercised the option to become Argentine citizens

• Parents, spouses or children (younger than 21 years of age or handicapped) of permanent or temporary residents (or of appli-cants for permanent or temporary residence status)

In addition, the NIB grants permanent residence permits to foreign nationals who have been granted temporary residence permits or visas and have legally resided in the country for an uninterrupted period of three years.

22 AR G E N T I NA

Entrepreneurs. Entrepreneurs are persons who meet the following requirements:• They customarily carry out business, economic or commercial

activities at their own risk and with their own capital.• They participate in a significant way in companies or legal enti-

ties carrying out the above activities and have the intention or capacity to make an investment in Argentina.

The status of entrepreneur is proved by submitting a certificate stating that the foreign national owns or is a member of a com-pany or legal entity. This certificate is issued by competent authorities of the immigrant’s country of origin or of the country where the company or companies are established. Commercial references or recommendations must also be filed.

Certain delays and inconveniences in obtaining permits are likely under this unusual procedure, which is not standardized.

Investors. The NIB considers an investor to be a person who makes a minimum investment of ARS 100,000 in Argentina and who provides a productive, commercial or service-supplying activity, or who convincingly proves that he or she has such a sum destined for investment in the aforementioned activities. Prior experience in such activities is desirable.

Proof of investment may be made by submitting deeds, securities, shares of companies or any other proof to the satisfaction of the NIB. If the investment is not made before the application for a residence permit, the availability of the ARS 100,000 sum may be proved by a certificate of deposit in a bank or a money order.

In addition, an investment project of a foreign national that involves a productive, commercial or service activity to be per-formed in Argentina must be analyzed in a feasibility report issued by a public accountant and legalized by the respective Public Accountants Board. Commercial references, background information or recommendations must also be filed.

Foreign company’s representative. A foreign company’s represen-tative must submit a certificate issued by the foreign company stating his or her appointment as attorney-in-fact by the foreign company.

If the company is not widely known in Argentina, a certificate issued by the competent authority in the country where the for-eign company is established stating its legal existence must also be filed with the NIB.

Application procedures. Application for admittance into Argentina may be made by the applicant or his or her attorney before the Argentine consular authorities abroad or before the NIB. Foreign nationals wishing to apply for residence permits may do so in one of two ways. If the foreign national is already in Argentina, he or she may apply for his or her residence permit directly to the NIB personally or through an attorney-in-fact specifically appointed by the applicant for that purpose. If the foreign national is still abroad, he or she may apply to the NIB for the respective visa through the prospective employer or another person. In both cases, applicants must submit certain notarized declarations and documents.

AR G E N T I NA 23

For applicants for temporary work visas, the most common pro-cedure for obtaining such visas is through a request made by a local company that has executed an employment agreement with the foreign national. The local company requests the permit from the NIB or from the corresponding Argentine consulate by stat-ing that it requires the services of the foreign national.

Although a request for admission may be filed with Argentine consulates abroad, the consulates do not have the authority to grant such requests. The consulates must forward the requests to the NIB, who will then notify the consulates as to whether to grant the visa. This procedure may take from two to three months. In certain cases, a request may be denied, most often for formal reasons.

If a foreign representative or a company files a request directly with the NIB, the NIB reaches its decision within three weeks. If the NIB deems the request unacceptable, additional information or documents may be filed to satisfy requirements for acceptance. An admission request must be submitted by a foreign representa-tive or by the employer company, depending on the admission criteria. After the admission is authorized, the foreign individual must appear before the Argentine consulate corresponding to the individual’s current foreign domicile of residence.

National Decree No. 836/2004 provides that only attorneys spe-cifically appointed by the employer company or the individual with respect to the NIB can make filings because they have been authorized by the immigration authorities to act on the individual or company’s behalf.

All individuals and companies that, for their own interests, request the admittance of a national of a country other than a country in the MERCOSUR must register with the National Registry of Foreign Personnel Requestors (Registro Nacional Único de Requirentes de Extranjeros, or RENURE), which was created by the NIB. Certain documentation must be filed with respect to such registration. Local companies must file the following docu-mentation:• A formal Letter of Request, which attests to the legal and actual

domicile of the company in Argentina. The company must include in the letter a special address in Buenos Aires, Argentina (if it is submitting the application to the head office of the NIB) or an NIB office address.

• The company’s articles of incorporation registered before the relevant authorities.

• Proof of regular registration before the tax authorities regarding value-added tax (VAT), income tax, social security tax and turnover tax.

• The company’s financial statements.• Power of attorney of the local entity’s signatory.• The Board of Directors’ Act through which the local company’s

authorities are appointed.• Sworn statement issued by the NIB through which the local

entity’s attorney registered with NIB indicates knowledge of all migratory rights and duties for local employers in Argentina with respect to the hiring of foreign personnel, signed by the respective local company officials, with the signature certified by a public notary.

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An individual requesting his or her own temporary residence permit or a temporary residence permit or visa for a foreign employee must file with the NIB a Certificate of No Penal Record from Argentina, through which his actual criminal records are reported.

The above documentation must be filed only once and only if the local company intends to hire new foreign employees for whom temporary residence permits or visas need to be requested. The documentation must be filed regardless of whether the employees enter Argentina with temporary residence permits or visas, or transitory business visas.

However, to allow the NIB to keep its records up-to-date, the fol-lowing documentation must be filed annually:• The company’s financial statements• The Board of Directors’ Act through which the local company’s

authorities are appointed

Whether the application for a temporary work visa is made to an Argentine consulate or before the NIB, the following information and documents are generally requested:• The applicant’s personal family data• Original birth certificate of the applicant and members of his or

her family, and marriage certificate, if applicable• A public clearance certificate issued by the authorities of the

country or countries where the applicant has resided for the past five years, stating that he or she has no criminal record

• A letter issued by the company stating the reasons for hiring the foreign national for a specific job

• A copy of the labor agreement under which the foreign national is hired (its validity is subject to the granting of the resident permit), if applicable

• Four-by-four centimeter photographs, three-quarter right pro-file, in black and white or in color with a light blue background

• Valid passport• Application form (required by some Argentine consulates)• University diploma (required by some Argentine consulates for

temporary work visa purposes)

The required documentation usually varies among consulates. Consequently, an inquiry to the consulate in the applicant’s cur-rent domicile is strongly recommended.

If the application is filed with the NIB, the legal entity hiring the foreign national must submit, among other documents, the following:• The legal entity’s certificate of tax identification code• The Letter of Request for the entry permit• The labor contract to be subscribed by the employee at the

consular interview• Documentation that evidences the labor experience of the

employee and the activity performed by the individual in his or her country of residence at the time of filing

• Certificate that evidences the local entity’s registration with the RENURE

If the company makes the filing, it should also submit an original power of attorney of the company’s representative who requests

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the individual’s entry permit or a copy of the power of attorney certified by public notary.

If the application is made before the Argentine consular authori-ties abroad, the consul conducts an interview with the applicant and his or her family after all of the other requirements are met. The consul then requests an entry permit from the NIB and grants them the corresponding visa.

If the application is made before the NIB while the foreign national is still abroad, an entry permit is issued after all the requirements are met, subject to the person’s actual legal entrance into the country. The permit is given to the representative of the legal entity hiring the foreign national and transmitted to the corre-sponding Argentine consulate abroad. The Argentine consulate in the foreign national’s current place of residence then issues the necessary visa following an interview with the applicant and his or her family. The whole process takes approximately 60 to 90 days.

The NIB fees total ARS 600 per entry permit. The renewal fee is ARS 600 per individual.

When applying for the renewal, the following documents must be filed:• Copies of the entry permits.• Birth and marriage certificates if children under 21 years old

are involved.• A letter of authorization issued by the requestor with his or her

signature certified. This letter must authorize the individual handling the process to file the passports on behalf of the requestor and his or her family and state that such attorney is specifically authorized by the local entity or individual to handle the renewal process on behalf of the requestor.

• The legal entity’s certificate of tax identification code.• The Letter of Request for the renewal by Argentina of the tem-

porary work visa.• The individual’s Certificate of No Penal Record for Argentina.• The individual’s pay slips related to his or her last nine months.• Passports.• Official certificate issued by the respective Argentine tax

authorities evidencing that the local entity and the individual have made all employer and employee social security contribu-tions in Argentina in the last year.

• Certificate that evidences the local entity’s registration with the RENURE.

On entering Argentina, foreign residents who have been granted temporary visas must submit to the immigration authorities their passports containing visas issued by the Argentine consulate.

One of the consular envelopes, which contain birth and marriage certificates and fingerprints taken at the consulate, is held by the immigration authorities, on the entrance of the foreign resident into the country. These documents are subsequently sent to the NIB for the issuance of the identity documents to the applicant and his or her family. The other consular envelope must be filed with the NIB when applying for the National Identity Card

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(Documento Nacional de Identidad, or DNI). For additional details on consular envelopes, see National Identity Cards.

The consular fees for temporary work visas vary on a case-by-case basis, but they are usually US$100.

It is advisable to retain a complete set of copies (certified by a notary public or an equivalent authority) or extra originals of the birth and marriage certificates after they are approved by the Argentine consulate. After they are notarized, they must be legal-ized by the Argentine consulate, or under the Convention of The Hague Apostille rules if the country of origin of the foreigner has adhered to the Hague Convention.

As a result of recent changes to the immigration law in Argentina, foreign individuals (other than those nationals of a country in MERCOSUR) who have entered Argentina as tourists may modify their immigration status without first leaving the country. Such individuals may apply for his or her residence permit directly to the NIB personally or through an attorney-in-fact specifically appoint-ed by the applicant for that purpose. Under both alternatives, the following information and documents are generally required:• The applicant’s personal family data.• Original birth certificate of the applicant and members of his or

her family, and marriage certificate, if applicable.• A public clearance certificate issued by the authorities of the

individual’s home country (country