Argentina: AFIP Updates on International Operations

Argentina`s tax authority AFIP has published a news General Resolution (No. 4,717) which  establishes the new  formalities and  requirements for the following purposes within international operations:

 

  • demonstrating the correct determination of prices, amounts of consideration or profit margins
  • prices set in operations of export and import of goods between independent parties
  • recognition and comparability analysis of the operations subject to the regime
  • actions are introduced regarding the evaluation of financial operations and services, intangible assets, business restructuring and hydrocarbon exports
  • the application of other methods of evaluating transfer prices

 

At the same time, the General Resolution considers issues related to operations with international intermediaries that intervene in the export and import of goods between or with related parties, and specifically in the export of listed goods. In addition, the new regulations establish guidelines for the documentation that taxpayers and / or those responsible must obtain and keep in order to demonstrate the correct determination of their results. Additionally, the regulations clarify that all the operations of the period must be submitted to the analysis of the transfer prices, instead of juts submitting a selection of samples as was sufficient beforehand.

 

Who has to submit what exactly?

On the other hand, the preparation of the new “Master Report” is required. It has to include specific legal and operational information of the members of the multinational economic group and its presentation by the taxpayer and / or person in charge and has to be submitted at the end of the fiscal year, if the consolidated annual income of the group exceeds $ 2,000,000,000. It must be signed by the legal representative of the taxpayer or person in charge and its presentation must be fulfilled through the service with the tax code “Digital Presentations”.

Form N ° 2668 is also incorporated, both to report import and export operations of goods between independent parties -only when they as a whole per fiscal period exceed the sum of $ 10,000,000-, excepting, in all cases, the subjects whose transactions carried out with related subjects abroad and with human or legal persons, assets of affectation, permanent establishments, trusts, or equivalent figures, domiciled, constituted or located in non-cooperative or null or low tax jurisdictions do not exceed as a whole in the fiscal period the amount equivalent to $ 3,000,000 or individual amount of $ 300,000. In case of not having operations to report in the fiscal period to be reported, the option “no movements” must be indicated in the sworn statement.

Taxpayers who meet any of the following conditions will be required to submit the Transfer Pricing Study:

  • The subjects whose operations are carried out with related parties in the fiscal year that are equal to or greater than $ 30,000,000.
  • The subjects obliged to present the Country-by-Country Report of the General Resolution AFIP N ° 4130-E; or those obliged to present the “Master Report” as long as the operations foreseen in the regime established by RG 4717/2020 invoiced as a whole in the fiscal period, exceed the total amount equivalent to $ 3,000,000 or individual amount of $ 300,000.
  • The subjects that carry out operations with subjects located in non-cooperative jurisdictions or with low or no taxation, as long as the operations foreseen in the regime established by RG 4717/2020 exceed the total amount equivalent to $ 3,000,000 or individual amount of $ 300,000.

The study must be certified by an independent professional accountant or graduate in economics with a signature authenticated by the Professional Council of Economic Sciences, college or entity that exercises control of their enrollment.

Exempt from presenting the Transfer Pricing Study and the Master Report are tax subjects whose transactions have been made with related parties abroad and with natural or legal persons, assets of affectation, permanent establishments, trusts, or equivalent figures.

 

What are the deadlines for submission?

The affidavit form F. 2668, the Transfer Pricing Study, and the Master Report corresponding to the fiscal periods closed between December 31, 2018 and April 30, 2020 must be submitted -with character of exception- by the taxpayers or responsible parties, in the months of July, August, and October 2020, as follows:

  • From December 2018 to May 2019, in July 2020
  • From June 2019 to November 2019, in August 2020
  • From December 2019 to April 2020, in October 2020

 

CUIT: Termination Expiration Date
0 or 1 Until day 10
2 or 3 Until day 11
4 or 5 Until day 12
6 or 7 Until day 13
8 or 9 Until day 14

 

Finally, although General Resolution No. 4,717 is in force from the day of its publication in the Official Gazette and is applicable for fiscal years closed as of December 31, 2018. In the case of the fiscal periods closed between December 31, 2018 and April 30, 2020, Form F. 2668, the Transfer Pricing Study and the Master Report must be submitted -with exception- , in staggered form, in June, August, and October 2020.

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!