On Sep 20, 2017 the National Tax Bureau issued General Resolution E- 4130/2017 (the “Resolution”) within the framework of action 13 of the project Base Erosion and Profits Shifting (“BEPS”) launched by the OECD and the G20.
The new Resolution provides for an annual informative regime comprising the filing of a country-by-country report to entities members of a Multinational Entities (“MNE”) Group. It excludes from the informative regime those entities which belong to a MNE Group but which total consolidated income for the economic period prior to the economic period of the report, does not exceed Euro 750 MM, or its equivalent in the local currency of the Ultimate Parent Entity at the exchange rate applicable as of January 31st, 2015.
Filing is required to:
1) MNE Groups when the Ultimate Parent Entity is resident in Argentine for fiscal purposes;
2) The Argentine entity that has been appointed – by its Ultimate Parent Entity – to stand in as responsible for the filing. The appointment is effective only if the Argentine entity’s net worth amounts to AR$ 50 MM or higher, or if it has operative/functional structure that allows it to gather information for the filing of country-by-country report.
3) any entity of Argentina member of the MNE Group, not included above, if:
(i) the Ultimate Parent Entity is not subject to filing country-by-country report under its fiscal jurisdiction,
(ii) the jurisdiction of the Ultimate Parent Entity has not entered into a Competent Authority Agreement to which Argentina is a party at the due date for submitting the country-by-country report, even when it may be party of an International Agreement in force with Argentina; or
(iii) there are certain systematic failures in complying with the automatic exchange information by the jurisdiction of the Ultimate Parent Entity.
It also provides for an informative regime (local report) applicable to all entities resident in Argentina that belong to a Group of MNE, who must grant information regarding their Ultimate Parent Entity and of the entity submitting the country-by-country report of the Group to which they belong.
The Resolution provides for the confidential treatment the National Tax Bureau must give to the information obtained under the country-by-country report. It also sets forth the fines for the lack of compliance with the regime.
The Resolution entered into effect as from the date of its publications in the Official Gazette (Sep 20, 2017) and it encompasses the fiscal year of each Ultimate Parent Entity of the MNE Group starting as from January 1st, 2017 inclusive.