On December 5, 2022, Argentine Minister of Economy Sergio Massa and U.S. Ambassador to Argentina Marc Stanley signed an Agreement for the Automatic Exchange of Tax Information with the United States (the “Agreement”) following the guidelines of the Foreign Account Tax Compliance Act (“FATCA”).
The Agreement refers to the previous agreement dated December 23, 2016, which gives legal support to the execution of this IGA 1 (intergovernmental agreement model 1,this means an agreement to exchange information bilaterally) to automatically exchange relevant information.
Please read our January 2017 Newsletter with this topic: https://canosa.com/argentina-united-states-surprisingly-move-forward-agreement-implementing-fatca-possibly-iga-1/
The Agreement primarily seeks to comply with FATCA and deliver the information that the United States collects from its financial system from residents of Argentina and agrees to deliver such information to the Argentine government “provided that there are appropriate security measures and infrastructure for an effective exchange of information.”
Given Argentina’s history of using information for purposes other than collection, the Agreement establishes limits for the use of information.
The definition of “Argentine reportable account” establishes that it is a financial account in a financial institution of the United States if (i) in the case of accounts of an individual resident in Argentina interest for more than US$10 during any calendar year is paid, or (ii) if the account holder is a resident of Argentina (including entities) in which US source income is subject to reporting under chapter 3 of subtitle A or chapter 61 subtitle F of the United States Tax Code.
The Agreement will enter into force on January 1 following Argentina’s notification of having complied with the internal procedures for its approval, so it will surely enter into force on January 1, 2023 with information to be received as of September 2024.