Tax News Update    Email this document    Print this document  

October 9, 2024
2024-1850

Argentine Chamber of Deputies approves Multilateral Instrument and other tax treaties

During a recent session, the Argentine Chamber of Deputies took action regarding the Multilateral Instrument (MLI) and tax treaties between Argentina and China, Luxembourg, Austria and Turkiye.

MLI to implement BEPS

On 1 October 2024, the Chamber of Deputies approved a bill to ratify the MLI to implement Tax-Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (BEPS). The bill has been submitted to the Senate for final approval.

Argentina signed the MLI on 7 June 2017, including a provisional list of expected Reservations and Notifications covering the bilateral tax treaties signed by Argentina.

Once the law is approved by the Senate, promulgated by the Executive Power and published in the Official Gazette, the MLI will enter into force upon the expiration of a period of three calendar months beginning on the date the instrument is submitted to the Organisation for Economic Co-operation (OECD). (For background, see EY Global Alert "Argentine Budget and Finance Committee approves Multilateral Instrument," dated 19 August 2024.)

Treaties

During the same 1 October session, the Deputies gave final approval to the Argentina-China Tax Treaty to avoid double taxation and prevent tax evasion and avoidance (Law No. 27,780), which had already been approved by the Senate.

The Deputies also approved the Argentina-Luxembourg Tax Treaty, for the reciprocal exemption from Income and Wealth Taxes for the operation of aircrafts in international transport (Law No. 27,774).

These Tax Treaties will enter into force once the laws are promulgated by the Executive Power, published in the Official Gazette and the contracting states notify each other that the respective internal approval procedures have been completed.

Finally, the Deputies also approved the Argentina-Austria Tax Treaty to avoid double taxation and prevent tax evasion and avoidance. This Treaty must still be discussed and approved in the Senate.

In other news, on 13 September 2024 Argentina notified Turkiye of the compliance with the internal requirements for the entry into force of the Argentina-Turkiye Tax Treaty to avoid double taxation and prevent tax evasion and avoidance, approved by Law No. 27,754, published in the Official Gazette on 9 September 2024. Considering that Turkiye had previously made a commensurate notification, this Treaty entered into force on 13 September 2024.

Implications

A case-by-case analysis should be made to identify the potential impact of the MLI and the approved Treaties in cross-border transactions involving multinational companies with a presence in Argentina.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

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

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor