Financial entities should ensure that they comply with the new rules in the General Resolution to avoid being subject to penalties.

The Argentine Tax Authorities (AFIP) issued General Resolution No. 3826/2015 (published in the Argentine Official Gazette on December 30, 2015), establishing rules for the adoption of the OECD's Automatic Exchange of Financial Information in Tax Matters.

Background

As part of the Multilateral Competent Authority Agreement (MCAA) to automatically exchange financial accounts information under the Common Reporting Standard (CRS), numerous countries — including Argentina — committed to the early adoption of the OECD's new standard for the automatic exchange of information between tax authorities. The first exchange of information among the early adopters will take place in September 2017.

The General Resolution establishes the rules to be followed by Argentine financial entities to report to the AFIP financial information of nonresidents for calendar year 2016 and onwards.

Main reporting and due diligence rules

In general terms, the General Resolution follows the CRS guidelines for the information and accounts to be reported and the way that information must be reported to the AFIP.

The new reporting regime applies to all financial institutions as they are defined in the CRS. Financial entities must report the information annually and file the information electronically before May 31st of the year following the year being reported. Financial entities should keep records of the information reported for 10 years.

Under the General Resolution, financial entities must report financial information for calendar year 2016 and onwards. Pre-existing accounts, created before December 31, 2015, with an account balance or value exceeding USD 100,000 as of such date, must also be reported.

According to the CRS and the General Resolution, financial entities must report the accounts held by nonresidents in countries and jurisdictions with which Argentina exchanges information on tax matters in accordance with the MCAA.

Generally, financial entities must report the following information for each reportable account: (i) name, address, jurisdiction(s) of residence, taxpayer identification number, and date and place of birth of the account holder; (ii) account number; (iii) name and identifying number of the reporting financial institution; and (iv) the account balance or value as of the end of the relevant calendar year. Other information also might be required.

Financial entities that fail to comply with the due diligence and reporting obligations may be subject to penalties in accordance with Law No. 11,683 and other tax effects (such as the inclusion or exclusion from certain tax registries).

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