Argentina

Suspension of mandatory disclosure regime

On 22 December 2022, General Resolution (AFIP) 5306/2022 (RG 5306/2022) was published in the Argentinian Official Gazette, repealing General Resolution (AFIP) 4838/2020 (RG 4838/2020) that regulated the temporarily suspended Tax Planning Reporting Regime. RG 5306/2022 replaced RG 4838/2020’s regime with a new regime called the ’Complementary Information Regime for International Transactions‘, which requires taxpayers to report transactions with foreign related parties and other parties domiciled in non-cooperative countries or countries with low or no taxation. RG 5306 applies to fiscal years ending on 1 August 2022 onwards.

Under the new regime, international operations must be reported, among others, in any of the following situations:

• Transactions involving permanent establishments (PEs) in the country.
• International transactions that result in double non-taxation.
• Transactions that shift benefits from one jurisdiction to another by taking advantage of asymmetries in the tax laws with respect to the tax treatment and/or characterisation of an entity, contract, or financial instrument.
• Any kind of agreement, scheme, or plan implemented with the purpose of avoiding informative obligations under the Common Reporting Standard (CRS) or Foreign Account Tax Compliance Act (FATCA).
• Any tax advantage obtained as a result of payments or interconnected operations when those payments return totally or partially to the person who initially made them or to any of its partners, shareholders, or related parties, or mechanisms that generate uncertainty with respect to the ownership of an asset.

Reportable international transactions carried out during each fiscal year must be reported by the taxpayer separately through the tax authorities’ website, within the deadline to file the respective annual corporate income tax (CIT) return of the respective Argentine entity/branch/PE. A penalty of 10,000 Argentine pesos (ARS) for failing to report is expected to apply.

Extraordinary CIT prepayment

By virtue of General Resolution 5391/2023, the Argentine tax authorities established an extraordinary CIT prepayment to be paid by those corporate taxpayers that, in their CIT return for fiscal year 2022 or 2023 (depending on their closing date), show the following parameters:

• Reported taxable income (prior to the use of existing net operating loss [NOL] carry forward) of ARS 600 million.
• Have not determined a tax payable.

The prepayment will be calculated by applying a 15% rate over the reported taxable income, without considering the use of existing NOLs. The amount of the prepayment should be paid to the tax authorities in three equal instalments, starting in August 2023 (for fiscal years ended between August and December 2022). The payment date for fiscal years ended between January and May 2023 will start in December 2023. For fiscal years ended in June and July 2023, the due date for payment will start in January and February 2024, respectively.

Through general resolution 5424/2023, published in the Official Gazette in September 2023, the Argentine tax authorities established an extraordinary new CIT prepayment payable by subjects who concurrently meet the following conditions:

• Those who register as their main activity any of those detailed as "Financial intermediation and insurance services or are registered as Payment Service Providers (PSP) with the Central Bank."
• Reportable taxable income for FY 2022 or 2023: $600,000,000 or more, without applying the deduction of tax losses from previous years.

 Taxpayers included in General Resolution 5391 (Big companies) and those legal entities that have obtained an income tax exemption certificate are excluded from this extraordinary prepayment.

 In December 2023, the tax authorities established (GR 5453/2023) another extraordinary prepayment to be paid by those corporate taxpayers (belonging to hydrocarbon sector) that, in its CIT return for fiscal year 2023, show the following concurrent conditions:

• Activities: hydrocarbon sector and related activities: oil and natural gas extraction, refining products and thermal energy generation.
• Reportable taxable income for FY 2022 or 2023: $600,000,000 or more, without applying the deduction of tax losses from previous years.

Taxpayers who have obtained an Income Tax exemption certificate, or who have already paid extraordinary advances for previous rules, are excluded. 

The extraordinary prepayment will also be paid in 3 consecutive monthly instalments, as occurred in other prepayments, and will be paid from December 2023 to May 2024, according to the closing of financial statements and instalment number.