AFIP General Resolution No. 4838/2020 | Reporting regime for domestic and cross-border structures.
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Tax Department Report | Reporting regime for domestic and cross-border structures
Dear Sir or Madam,
Through General Resolution No. 4838/2020, the Federal Tax Authority (AFIP) established a mandatory reporting regime for domestic and cross-border tax planning structures, whose main aspects are commented as follows.
Which are the reportable tax planning structures?
a) Domestic tax planning structures: Any agreement, plan, or any other activity through which a taxpayer obtains fiscal advantages or other tax benefits in Argentina with respect to federal taxes or informative regimes. The reportable structures would be those included on the microsite, “Régimen de Información de Planificaciones Fiscales”, on the AFIP’s website (not yet available).
b) Cross-border tax planning structures: Any agreement, plan, or any other action through which a taxpayer obtains tax advantages or other tax benefits in Argentina and any other jurisdiction, especially involving the following:
• Legal entities used to obtain double tax treaty benefits; strategies adopted to avoid triggering a permanent establishment; a structure resulting in double international non-taxation; location of taxable base outside Argentina or an intention to avoid compliance with an informative regime.
• The involvement of a non-cooperating jurisdiction or a low-or no-tax jurisdiction.
• A mismatch between two or more jurisdictions regarding the tax treatment of an entity or agreement that results in a tax advantage or other tax benefits.
• A foreign individual or entity holding double tax residency.
• Anyone who is the beneficiary, grantor, or trustee (or has similar characteristics as those taxpayers) of non-Argentine trusts, non-Argentine private foundations, or any other non-Argentine business.
• A structure specifically listed on the microsite, “Régimen de Información de Planificaciones Fiscales”, on the AFIP’s website (not yet available).
Who are the reporting parties?
a) Taxpayers: when participating in any tax planning structure.
b) Tax advisors: when participating (directly or through related parties) in implementing a tax planning structure, unless they invoke professional confidentiality and report that option to the taxpayer through the AFIP’s website. The taxpayer, however, may waive professional confidentiality.
What are the due dates?
a) Domestic tax planning structures: must be reported in the month following the end of the fiscal year in which the structure was implemented.
b) Cross-border tax planning structures: must be reported within 10 days since implementation.
c) Existing tax planning structures as of 20 October 2020: must be reported no later than 29 January 2021 if they have been implemented since 1st January 2019 or before then if they are still in effect as of 20 October 2020.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Santiago L. Montezanti