On 27 December 2022, Argentina’s federal tax authority (AFIP) released General Resolution No.5306/2022, establishing a new mandatory disclosure regime for certain international transactions. It has replaced the previous mandatory reporting regime enacted by General Resolution No. 4838/2020 on 20 October 2020.
The new regime applies to companies, non-profit entities, trusts, mutual funds, and permanent establishments incorporated or resident in Argentina. Transactions subject to the new rules include those conducted by Argentine legal entities with foreign parties, permanent foreign establishments with associated parties, and persons domiciled, incorporated, or domiciled in so-called “non-cooperative” or low-tax jurisdictions. The regime also applies to all corporate restructurings that do not fall under the international information regime of country-by-country reporting. Reporting entities must provide AFIP with the relevant information about the international transaction and why it is subject to the reporting regime, as well as the identities of the parties involved in the transaction, their country of tax residence and the jurisdictions involved.
Entities will fall into penalty provision under the tax procedure act for any non-compliance with the regime’s obligation. The resolution became effective on December 27, 2022, and applies to the reporting entity fiscal years ending on or after August 1, 2022.
