Under the new rules, SPVs must annually file transfer pricing analyses with the ARCA for both local and international transactions, including those in low- or no-tax jurisdictions, and may engage in Contribution and Cost Sharing Agreements.
Argentina’s tax authorities (ARCA) published the General Resolution 5590/2024 (GR 5590) in the Official Gazette on 23 October 2024.
GR 5590 introduces transfer pricing regulations for Sole Purpose Vehicles (SPVs), ensuring that their transactions are conducted under terms comparable to those between independent entities.
Under GR 5590, SPVs are now required to submit an annual filing with the AFIP, due six months after the fiscal year-end, which must include a transfer pricing analysis for local and international transactions, including dealings with third parties in low-tax, no-tax, or non-cooperative jurisdictions. Additionally, new regulations establish a framework for SPVs to participate in Contribution Agreements and Cost Sharing Agreements (CSAs).
SPV transactions with local parties
Members of joint ventures (UTEs) or similar contracts, SPV owners, and local related entities, all incorporated, domiciled, or tax-resident in Argentina under the Income Tax Law (ITL), are subject to regulations, including those outlined in Article 76 of Decree No. 749/24 under the Incentive Regime for Large Investments (RIGI).
SPV transactions with foreign or low-tax parties
GR 5590 emphasises that SPVs must follow transfer pricing rules (as per the Income Tax Law, its Regulatory Decree, and GR 4717) for transactions with related foreign parties or entities in low-tax, no-tax, or noncooperative jurisdictions.
SPVs’ participation in Contribution Agreements and CSAs
Contribution Agreements (CSAs) are required to follow the arm’s-length principle, ensuring participants’ CSA contributions and expected benefits are proportional and comparable to independent entities in similar situations. Participants are those who contribute and assume risks with a reasonable expectation of benefits. Each participant’s contribution to the CSA must be proportional to their share of the expected benefits.
Additionally, detailed documentation on participants, operations, and associated companies benefiting from the CSA is required.
GR 5590 also outlined the application of tax and customs benefits under the new Special Incentive Scheme for Large Investments (RIGI). The RIGI scheme in Argentina offers tax, customs, legal, and foreign exchange benefits to attract investments exceeding USD 200 million from both local and international companies.
