Global Tax Alert (News from Americas Tax Center) | 20 December 2013

Argentine Tax Authorities issue new tax compliance obligations regarding transactions between local related parties

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The Argentine Federal Tax Authorities (AFIP) have issued General Resolution 3572 (published in the Official Gazette on 19 December 2013), creating a “Related Parties Register” and establishing a monthly informative system related to transactions performed between local related parties.

Related Parties Register

Argentine corporate resident taxpayers including companies, Argentine branches and certain trusts must be registered in the new Related Parties Register, whenever they are related with other entities located in Argentina or abroad.

The related-party nature will be considered to exist if one of the situations included in Annex I to General Resolution 3572 is verified (which includes various situations of economic or functional relationship). Among others, majority participation in the capital, common ownership, exclusivity as distributor, common management, provision of key technological knowledge, provision of substantial funding, constitute situations that evidence a related-party relationship.

In general terms, the information to be reported includes: Tax ID Number of the resident entity obliged to enroll in the Register and of the related parties being informed, names and addresses, and type of relationship.

The enrollment in the Register will be made through the tax authorities’ website in accordance with the provisions contained in General Resolution 3572. In addition, any inclusion or amendment in the Register must be performed within 10 working days from the change that motivated the update in the Register.

Informative system for local transactions

The same resident entities obliged to register in the Related Parties Register outlined above will also have to comply with a monthly informative system regarding transactions performed in the Argentine market with local related parties.

The information to be reported includes: Tax ID Number of the resident entity making the filing and of the related parties with which transactions were performed, names and addresses, list of transactions performed (e.g., sales, purchases, etc. including transactions performed for no consideration) and detail of supporting evidence of such transactions (e.g., invoice type and number, date, amounts, applicable VAT rate).

The compliance with the monthly filing will be achieved through the utilization of Form No. 968, to be submitted through the tax authorities’ website in accordance with the provisions contained in General Resolution 3572. If in any given month there are no transactions to be reported, the filing will have to be made anyway with the legend “No Movements.”

The dispositions contained in General Resolution 3572 will enter into force on 3 January 2014. However, it is established that filings will be considered made on time as follows:

  • For taxpayers registered in the Large National Taxpayers Office: up to 1 April 2014, regarding filings due up to 31 March 2014.
  • For other taxpayers: up to 1 July 2014, regarding filings due up to 30 June 2014.

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

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
  • Carlos Casanovas
    +54 11 4318 1737
    carlos.casanovas@ar.ey.com
  • Gustavo Scravaglieri
    +54 11 4510 2224
    gustavo.scravaglieri@ar.ey.com
  • Ariel Becher
    +54 11 4318 1686
    ariel.becher@ar.ey.com
  • Pablo Baroffio
    +54 11 4510 2271
    pablo.baroffio@ar.ey.com
Ernst & Young LLP, Latin American Business Center, New York
  • Alfredo Alvarez
    +1 212 773 5936
    alfredo.alvarez@ey.com
  • Pablo Wejcman
    +1 212 773 5129
    pablo.wejcman@ey.com

EYG no. CM4057