Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

June 10, 2019
2019-5737

Argentina amends tax binding inquiry system

The Argentine tax authorities amended the binding inquiry (ruling) system for tax and social security purposes through General Resolution No. 4497 (GR 4497), published in the Official Gazette on 30 May 2019.

GR 4497 adapts the Argentine ruling system to the OECD1 BEPS2 Action 5 minimum standard, which includes a commitment to transparency through the compulsory spontaneous exchange of relevant information on taxpayer-specific rulings.

Detailed discussion

Although GR 4497 amends the ruling process, most procedural aspects of the ruling process remain unchanged. However, GR 4497 adds transfer pricing (TP) issues to the list of items that the tax authorities may consider under the ruling process, except for Advance Pricing Agreements (APAs), which will be regulated separately.

To obtain a ruling, taxpayers or eligible representatives must file a request before the event triggering a tax occurs or before the due date for filing the tax return for the period in which the event must be declared. The request must include a detailed description of the parties, facts, and economic-legal relationships involved in the transaction, the taxpayer’s opinion and basis, and the purpose of the request.

GR 4497 establishes that ruling requests related to preferential regimes, transfer pricing, downward adjustments of taxable profits (not reflected in financial information), permanent establishments and conduit entities will require additional information, such as the identification of the group members involved (including residence, Tax ID numbers and participation percentages, among others). For conduit companies, taxpayers must indicate the tax residence and domicile of the beneficial owners of the income.

The tax authorities’ ruling will be binding on the taxpayer to the extent the fact pattern or other circumstances do not change.

The ruling system, as amended by GR 4497, will apply to requests filed as from 6 June 2019.

Companies doing business in Argentina and foreign investors evaluating projects in Argentina should consider whether a ruling is needed before entering into a transaction, taking into consideration the facts and circumstances of their particular case.

Endnotes

1. Organisation for Economic Co-operation and Development.

2. Base Erosion and Profit Shifting.

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
  • Carlos Casanovas | carlos.casanovas@ar.ey.com
  • Gustavo Scravaglieri | gustavo.scravaglieri@ar.ey.com
  • Ariel Becher | ariel.becher@ar.ey.com
Ernst & Young LLP (United States), Latin American Businsess Center, New York
  • Pablo Wejcman | pablo.wejcman@ey.com
  • Juan Ignacio Pernin | juan.ignacio.pernin@ey.com
  • Ana Mingramm | ana.mingramm@ey.com
  • Enrique Perez Grovas | enrique.perezgrovas@ey.com
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Pablo Baroffio | pablo.baroffio@uk.ey.com
  • Jose Padilla | jpadilla@uk.ey.com
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo | raul.moreno@jp.ey.com
  • Luis Coronado, Singapore | luis.coronado@sg.ey.com

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2023, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the 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.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct