Argentina: Information reporting by multinational entities, new regime for reporting tax planning
Argentina: Information reporting by MNEs
The Argentine tax authority (AFIP) issued guidance—General Resolution 4838/2020, published in the official gazette on 20 October 2020—implementing a regime for reporting tax planning information (both nationally and internationally) and the requirements, terms, and conditions that taxpayers must satisfy for these purposes.
In general, for these purposes, tax planning is any agreement, arrangement, plan or any other action that results in a tax advantage or any other type of tax benefit favoring the taxpayer that is implemented and carried out in Argentina or that involves Argentina and one or more foreign jurisdictions.
Under this regime, multinational entities (MNEs) need to put in place processes and systems to identify and monitor reportable transactions regarding their operations in Argentina. This is similar to the tax transparency agenda of the OECD and generally follows similar reporting regimes in the United States, the United Kingdom, Ireland, Portugal, Canada, South Africa, Mexico, and Chile (among others).
The obligation to report tax planning must be fulfilled by the following:
- Taxpayers—when they participate in “tax planning” as defined under in the new regulations.
- Tax advisors—individuals and legal entities that, in the ordinary course of their activity, help, assist, advise, provide an opinion or conduct any activity related to the implementation of tax planning, provided that they participate in the implementation directly or through third parties.
The obligation to report the required information is separately an obligation of both the taxpayer and the tax advisors. Compliance with the information reporting requirements by one does not release the other from the obligation to report.
Reporting required before 29 January 2021
Reportable tax planning arrangements that were implemented during the period from 1 January 2019 through 20 October 2020 or that were implemented prior to 1 January 2019 and remain in effect as of 20 October 2020, must be reported before 29 January 2021.
New international tax planning arrangements must be reported within 10 days of their implementation.
Nevertheless, there may be opportunities for taxpayers to consider in light of these new requirements.
For more information, contact a tax professional with KPMG’s Latin America markets tax group or with the KPMG member firm in Argentina:
Niren Saldanha | +1 212 954 3835 | firstname.lastname@example.org
Christian Athanasoulas | +1 617 988 1015 | email@example.com
Alfonso A-Pallete | +1 212 954 3852| firstname.lastname@example.org
Rodolfo Canese | +54 11 4316 5753 | email@example.com
Violeta Lagos | +54 11 4316-5740 | firstname.lastname@example.org
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