Argentina establishes simplified transfer pricing reporting regime

By Hernán Ubertazzi, partner, 3D Asesores, Buenos Aires

Argentina’s tax agency has created a simplified regime for transfer pricing information reporting to alleviate the operational burden and costs for taxpayers that are considered low risk by the agency, through General Resolution 5010/2021, issued June 18. The new rules modify the transfer pricing regulations released last year in General Resolution 4717/2020.

The new rules also implement the previously announced three-month extension to the deadline to submit transfer pricing documentation for fiscal years ending December 31, 2020, through December 31, 2021.

Certain conditions and requirements apply to qualify for the simplified regime.

Among these requirements, taxpayers must not have reported recurring operating losses in their financial statements, nor should they have undergone business restructuring processes in the last three years.

In addition, to qualify taxpayers must not carry out material operations involving royalties, license rights, research and development agreements or services with related parties or third parties located in non-cooperating countries or jurisdictions with low or no taxation.

Further requirements include not having loans with foreign related parties, not importing or exporting goods through an international intermediary, and not belonging to multinational groups that are required to submit the country-by-country report or master file.

Taxpayers that qualify for the simplified regime may complete applicable reporting requirements relating to international operations through a new simplified form to be submitted through the tax agency’s website: “F2672, international operations simplified regime”.

However, compliance with the simplified regime will not exempt the taxpayer from analyzing and preparing the transfer pricing report (a separate requirement from the transfer pricing form) or local file.

Additionally, the regulations clarify that the treasury will not accept comparable companies that present operating losses, unless the taxpayer adequately justifies their acceptance.

Likewise, some thresholds are reduced for submitting the transfer pricing report, while the threshold for submitting the master file is raised from 2 billion pesos (approximately USD 21 million) to 4 billion pesos (approximately USD 42 million) of consolidated annual income at the multinational group level.

Finally, the regulations establish that if there are no changes with respect to the information included in the previously submitted master file, the taxpayer may submit a note ratifying the information is current, attaching the new consolidated financial statements and details of the advanced pricing agreements in force with respect to the multinational group.

–Hernán Ubertazzi is a partner with 3D Asesores, Buenos Aires.

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