The Argentine tax authority (AFIP) has released additional clarifications about its interpretation of the rules concerning country-by-country (CbC) reporting and filing obligations.
The AFIP has posted answers to questions on the Q&A section of the CbC reporting microsite of the AFIP website. One recent Q&A (Spanish) (12 December 2018) clarifies that Argentine entities of a U.S. multinational entity (MNE) group are not required to file locally the CbC report for fiscal year 2017 because for fiscal year 2017 “there is neither an international agreement in force that allows an automatic tax information exchange for fiscal year 2017 nor a qualifying Competent Authority Agreement in force to exchange the country-by-country report between both jurisdictions.”
No existe un acuerdo internacional que prevea el intercambio automático de información tributaria, vigente para el ejercicio fiscal 2017 (i.e., que permita intercambiar información correspondiente al ejercicio fiscal 2017), ni un Acuerdo sobre Autoridad Competente Calificativa en vigor para el Intercambio del Informe País por País entre ambos países.
While the Argentine rules (AFIP Resolution 4130 modified by Resolution 4332) generally are based on the OECD base erosion and profit shifting (BEPS) Action 13 CbC implementation package, the wording of the Argentine rules gave rise to certain doubts among practitioners as to the requirements for fiscal year 2017. The recent Q&A clarification appears to resolve these uncertainties.
Providing that the rules remain the same and in the event that Argentina and the United States do not sign a Competent Authority Agreement for fiscal year 2018, the requirement for a secondary CbC report filing in Argentina will arise for Argentine-based entities of U.S. MNE groups.
Lastly, it is important to note that along with clarification of the requirement concerning whether certain secondary CbC reports are to be filed in Argentina for fiscal year 2017, the lists of jurisdictions having effective agreements in force—including China and Switzerland—are provided by the AFIP.
These lists are posted on the AFIP website (Spanish) and reflect the official guidelines regarding application of the CbC reporting secondary filing rules.
For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services practice in Argentina:
Marcelo Castillo | +54 11 431 65 891 | email@example.com
© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.