Taxpayers should review their operations and the information required for filing the transfer pricing report and master file.

On June 5, 2020, the Argentine Federal Tax Authorities (AFIP — Administración Federal de Ingresos Públicos) published, in the Official Gazette, General Resolution No. 4733 (GR 4733), which extends for one month the due dates for transfer pricing (TP) filings established in GR 4717 for tax years ending December 2018 to May 2019. The other due dates established in GR 4717 remain unchanged. For more information on GR 4717, see Tax Alert 2020-1407.

Background

On May 15, 2020, AFIP published GR 4717, containing the long-awaited regulations implementing the TP provisions enacted as part of the tax reform in December 2017. These rules mainly cover the TP compliance obligations for tax years ended December 2018 and onwards (including due dates and the creation of new returns). Those compliance obligations include the filing of the TP report (local file) and master file. Additionally, the regulations introduce definitions and requirements that affect existing and future intercompany transactions involving Argentine companies. Multinational companies doing business in Argentina should review the new regulations and assess their intercompany transactions.

Compliance obligations and new due dates

The TP report and master file were originally due beginning the week of May 18, 2020. GR 4717 extended the due date for Form 2668, the TP report and the master file for tax years ending December 2018 to April 2020. Under GR 4717, the due date for filings for tax years ending December 2018 to May 2019 was from June 10 to June 14, 2020. GR 4733 further extends the filing due date for those tax years to July 10 through July 14, 2020.

Additional information

According to GR 4733, AFIP changed the filing due date because:

• It would be difficult for taxpayers to collect certain information from abroad and comply with tax obligations by the due date originally set, due to the COVID-19 pandemic
• The AFIP web service for submitting the TP filings is not yet operational

Implications

Companies should carefully assess the obligations with which they must comply and consider implementing alternative processes for intercompany transactions in light of the new definitions and specific criteria established for different issues. Failure to comply with this new legislation may result in penalties and increase the probability of being audited by the tax authorities.

The new TP rules could have significant implications for companies doing business in Argentina. Companies may have to perform a detailed analysis of financial operations, service provisions and transactions involving intangibles or intermediaries, among others.

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