Suspension of mandatory disclosure regime
On December 22, 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 "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. The RG 5306 applies to fiscal years ending on August 1, 2022 onwards.
Under the new regime, international operations must be reported, among others, in any of the following situations:
- Transactions involving permanent establishments 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 characterization of an entity or contract or of a 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 return of the respective Argentine entity/branch/PE. A penalty of ARS10,000 for failing to report is expected to apply.
Extraordinary Corporate Income Tax prepayment
By virtue of General Resolution 5391/2023 the Argentine Tax Authorities established an extraordinary Corporate income Tax (CIT) prepayment to be paid by those corporate taxpayer that in their CIT return for fiscal year 2022 or 2023 (depending on their closing date) show the following parameters:
- Reported a taxable income (prior to the use of existing net operating loss (NOL) carry forward) of AR$ 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 NOL. The amount of the prepayment should be paid to the tax authorities in three (3) equal instalments, starting in August 2023 (for fiscal years ended between August and December 2022). Payment date for fiscal years ended between January and May 2023 will star 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.