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March 10, 2023
2023-0458

Argentine Tax Authority launches website service to ensure compliance with mandatory disclosure regime

  • The Argentine Tax Authority (AFIP) has launched the "Régimen de información complementario de operaciones internacionales" service on their website to ensure compliance with the mandatory disclosure regime (MDR) for international transactions as established in General Resolution No. 5306/2022.

Background

On 27 December 2022, AFIP published General Resolution No. 5306/2022 (the Resolution) in the Official Gazette. The Resolution established a new informative regime for certain international transactions (RICOI or "Régimen de Información Complementario de Operaciones Internacionales", in Spanish) to be complied with by Argentine legal entities and replaces the suspended mandatory reporting regime for domestic and international arrangements enacted by General Resolution No. 4838/2020.1

On 27 February 2023, AFIP made RICOI available on its website (http://www.afip.gob.ar) to comply with the regime.

The RICOI must be complied with by companies, non-profit entities, trusts, mutual funds, and permanent establishments incorporated or located in Argentina, for the following transactions:

  • Transactions performed with legal entities, trusts, permanent establishments, or other parties domiciled, incorporated, or located abroad, if they are related parties.
  • Transactions performed with parties domiciled, incorporated, or located in non-cooperating jurisdictions or low or no-tax jurisdictions, even when carried out through their permanent establishments abroad.

The international transactions to be reported are those carried out during the fiscal years of the reporting entity that close on or after 1 August 2022.

Taxpayers must report such transactions up to the due date for filing the Income Tax return for the fiscal year to which they correspond (fifth month after year-end, e.g., for fiscal years ended on 31 December 2022, the report is due during the third week of May 2023).

For each reportable international transaction detailed in the Resolution, the local entity must report the following information:

  • Type of international transaction
  • Identifying data of the parties involved in the international transaction

Implications

In light of the upcoming deadlines for filing Income Tax returns, taxpayers should evaluate if there is any obligation to report the international transactions included in this informative Regime.

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For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

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ENDNOTE

1 For more information, see EY Global Tax Alerts, Argentina implements mandatory disclosure rules, dated 21 October 2020, Argentine Tax Authority suspends mandatory disclosure regime, dated 6 September 2022, Argentine Tax Authority extends suspension of mandatory disclosure regime, dated 2 November 2022 and Argentina implements new mandatory disclosure regime for international transactions, dated 4 January 2023.

 

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