07 January 2026 Argentina updates transfer pricing penalties for noncompliance with formal obligations - Law 27,799, published on 2 January 2026, updates the fines applicable for noncompliance with transfer pricing formal duties, marking the first update in over two decades.
- Fines for failing to submit transfer pricing returns have increased from ARS20k to ARS22m (approx. US$15k) per form, emphasizing the need for accurate and timely submissions.
- Companies in multinational enterprise (MNE) groups with revenues exceeding €750m million face increased penalties for failing to file the first or second notification of the Country-by-Country Report, with fines now ranging from ARS6m to ARS15m (approximately US$4k to US$10k).
- MNEs must ensure proper preparation and organization of transfer pricing forms and documentation to help address risks associated with these heightened penalties, as the deadlines for submissions remain unchanged.
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Law 27,799 (the Law), published in the Official Gazette of the Argentine Republic on 2 January 2026, introduces modifications to the Tax Procedure Law (Law 11,683 and its amendments). The Law, in part, revises the fines imposed for noncompliance with taxpayers' formal obligations, marking the first update to these penalties in more than two decades. The main updates incorporated into the fines for noncompliance with the transfer pricing regime include: - For multinational enterprises (MNEs) that fail to submit transfer pricing returns, fines are increased from 20,000 Argentine pesos (ARS20k) to ARS22m (approx. US$15k) per form. This applies to Forms 2668 and 4501 (Transfer Pricing Report).
- For companies that belong to MNE Groups with revenue exceeding €750m that fail to file the first or second notification of the informative returns for the Country-by-Country (CbC) Report, the range of fines is increased from ARS80k to ARS200k to ARS6m to ARS15m (approx. US$4k to US$10k).
- For lack of cooperation with inspection (consisting of repeated noncompliance with the requirements of the acting officials), failure to provide data required by Tax Authorities (ARCA) for the control of international operations, or failure to keep the receipts and supporting elements of the prices agreed in international operations, fines are increased from ARS45k to ARS35m (approx. US$24k).
The amounts reported will be adjusted annually, as of 1 January 2027, considering the annual variation of the Purchasing Value Unit (Unidad de Valor Adquisitivo (UVA), in Spanish) between January and December of the calendar year immediately preceding the adjustment. The amendments of the Law are effective as of 2 January 2026, date of the publication in the Official Gazette. The table below details the updates to the fines for failure to file, late filing, failure to keep documentation or respond to requirements of all the obligations of the Transfer Pricing regime: Obligation | Fine | Before | Now | PT/Form 2668 Report Related-party transactions | ARS20k | ARS22m | Form 2668 Only exports and/or imports with unrelated parties | ARS9k | ARS10m | Failure to respond to inspection/ Failure to conserve supporting documentation regarding international operations | ARS45k | ARS35m | 1st and 2nd CbC Report Notification For groups required to submit | ARS80k to ARS200k | ARS6m to ARS15m | 1st CbC Report Notification For groups not required to file | ARS15k to ARS70k | ARS1.125m to ARS5.250m | CbC Report | ARS600k to ARS900k | ARS45m to ARS67.5m | Additional information requirements CbC Report | ARS180k to ARS300k | ARS13.5m to ARS22.5m | Failure to respond to CbC Report audit | ARS200k | ARS15m |
Given these significantly higher penalties, it is especially important for MNEs to plan for and coordinate the preparation of the transfer pricing forms, documentation and analysis. Note that, according to General Resolution 4717, the deadlines for submitting the various filings of the Transfer Pricing regime (e.g., TP study, Master Report, Form 2668) have not changed. | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Pistrelli, Henry Martin & Asociados S.A., Buenos Aires Ernst & Young LLP (United States), Latin American Business Center, New York Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific | | Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor |
Document ID: 2026-0137 |
