Argentina: Transfer pricing rules enacted | KPMG Global
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Argentina: Transfer pricing rules reformed, revised

Argentina: Transfer pricing rules reformed, revised

The Argentine government issued Decree 1112/2017 (29 December 2017) enacting and making effective comprehensive tax reform—including the following new rules for transfer pricing.


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Intermediary substance test

For imports and exports of goods when an international intermediary is involved in the transaction, there is a new requirement that the Argentine taxpayer demonstrate that the compensation paid to that intermediary is aligned with the functions, assets and risks involved in the transactions. This provision will apply when: (1) the intermediary is a related party of the Argentine taxpayer, or (2) the foreign counterparty in the transaction is a related party of the Argentine taxpayer. 

Sixth method

The previously so-called “sixth method” has been adopted pursuant to the principles recently developed under Action 10 of the base erosion and profit shifting (BEPS) initiative and as integrated within the OECD guidelines for commodity transactions. The prior Argentine measures included a mandatory “method” in order to consider the price as of the shipment date in certain commodity export transactions. The new rules include provisions requiring that with respect to exports of commodities, when an international intermediary is involved, the Argentine taxpayer—in addition to complying with the substance test described above—must register, with the local tax authorities, the written agreements within which the price and other conditions of the export of such goods have been determined. If there is no registration, the pricing of the transaction will be determined based on the price at the shipment date.

Low tax jurisdictions

The transfer pricing rules apply not only to related-party transactions but also to transactions when the counterparty is located in a jurisdiction considered to be “non-cooperative.” The new law adds the concept of “low-tax jurisdictions” for which transactions with parties in these jurisdictions are also subject to transfer pricing scrutiny.


As a first step in including regulations that implement advance pricing agreements (APAs), a new chapter is added to the “tax procedure law”—the chapter is Determinación Conjunta de Precios de Operaciones Internacionales and includes rules governing unilateral APAs with the Argentine tax authorities.

CbC reporting penalties

A new article in the tax procedure law concerns penalties in relation to a failure or deficiencies in complying with the country-by-country (CbC) reporting rules as adopted in Argentina (AFIP Resolution # 4130/17). Included in the penalties are the following:

  • CbC filing failure – Penalties range from AR$ 600,000 to 900,000
  • CbC notification failure – Penalties range from AR$ 80,000 to 200,000

Transfer pricing compliance thresholds

The new tax law delegates to the tax administration the authority to issue regulations for a minimum threshold to be considered for general transfer pricing compliance filings (that is, the transfer pricing return and a transfer pricing report).

KPMG observation

The new law is viewed as an important step in aligning the Argentine transfer pricing rules to the transparency and substance concepts in the taxation of international transactions. However, certain measures under the new rules will require further clarification from the tax authorities in future guidance and regulations. 


For more information, contact a KPMG tax professional in Argentina: 

Marcelo Castillo | +54 11 431 65 891 |

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