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

October 21, 2020
2020-6374

Argentina implements mandatory disclosure rules

The Argentine Federal Tax Authorities (AFIP) have issued General Resolution No. 4838/2020 (published in the Official Gazette on 20 October 2020), which establishes a mandatory reporting regime for domestic and international arrangements (planificaciones fiscales, in Spanish) implemented since 1 January 2019 or implemented before that date but with effects that subsist as of 20 October 2020.

Reportable arrangements

In accordance with the Resolution, the following arrangements must be reported:

Domestic arrangements: Any agreement, plan or any other action through which a taxpayer obtains fiscal advantages or other tax benefits (i.e., any reduction in the taxable base of the taxpayer or related entities) in Argentina with respect to federal taxes or informative regimes. Specifically, taxpayers and tax advisors must report arrangements included on the microsite, “Tax Arrangements Information Regime” (Régimen de Información de Planificaciones Fiscales), on the AFIP’s website.

International arrangements: Any agreement, plan or any other action through which a taxpayer obtains tax advantages or other tax benefits in Argentina and any other jurisdiction. Taxpayers and tax advisors must report international arrangements involving the following:

  • Legal entities used to obtain double tax treaty benefits
  • Strategies adopted to avoid triggering a permanent establishment
  • An arrangement resulting in double international non-taxation
  • An intention to avoid compliance with an informative regime
  • The involvement of a non-cooperating jurisdiction or a low- or no-tax jurisdiction
  • A mismatch between two or more jurisdictions regarding the tax treatment of an entity or agreement that results in a tax advantage or other tax benefits
  • A foreign individual or entity holding double tax residency
  • A taxpayer who is the beneficiary, grantor or trustee (or has similar characteristics as those taxpayers) of non-Argentine trusts, non-Argentine private foundations or any other non-Argentine business
  • An arrangement specifically listed on the AFIP’s tax arrangements microsite

Reporting parties

Taxpayers that participate in any domestic or international tax planning arrangements as defined previously must comply with the mandatory reporting regime.

Additionally, tax advisors that participate (directly or through related parties) in implementing a tax planning arrangement must comply with the regime, unless they invoke professional confidentiality and report that option to the tax authorities. The taxpayer, however, may waive professional confidentiality.

If multiple parties are involved in a transaction, all will need to report and the reporting by one will not exempt others from reporting. It is not clear which of the parties will have the primary obligation to report in that scenario.

Reporting due dates

Taxpayers and tax advisors must report domestic tax planning arrangements implemented since 20 October 2020, in the month following the end of the tax year in which the arrangements were implemented.

They also must report international tax planning arrangements implemented since 20 October 2020, within 10 business days counting from the day in which the implementation begins (i.e., when the first step is taken).

Domestic and International tax planning arrangements implemented from 1 January 2019 to 19 October 2020 or implemented before 1 January 2019 but still in effect on 20 October 2020, must be reported no later than 29 January 2021.

Characteristics of the information required and filing procedure

When reporting arrangements, taxpayers and tax advisors must include a complete description of the relevant facts, details on the parties involved, and any other relevant element or transaction regarding the tax planning arrangement. They also must include a detailed analysis of the rules (including foreign legislation) that apply to the arrangements. The information must be reported electronically on the AFIP’s website.

Penalties

Taxpayers and tax advisors that do not comply with this regime may be subject to fines as set out in the Tax Procedural Law. They also could be excluded from tax registries that provide tax benefits and barred from obtaining tax credit certificates. Additionally, their risk of being assessed or audited, as determined by the tax authorities under the “Risk Perception System” (SIPER in Spanish), could increase.

Implications

Taxpayers and tax advisors in Argentina should carefully review transactions conducted in 2020 and in prior years to determine whether any of the transactions give rise to a reporting obligation. Transactions conducted before 2020 that result in tax benefits must be disclosed.

_____________________________________________________________________________________________________________

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

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin American Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Tokyo

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 © 2024, 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 Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more