On 30 May 2019, the Argentine tax authority published General Resolution No. 4497 (GR 4497/2019) in the official gazette amending the binding ruling (as established by Article 4 of Law No. 11,683) regulations, which adapts the Argentine tax ruling system to the BEPS Action 5 minimum standard. The resolution includes a commitment to transparency through the compulsory spontaneous exchange of relevant information on taxpayer-specific rulings.
The Resolution establishes an obligation to file additional information when an Argentine resident or a foreign investor – that has one or more foreign related entities, files binding ruling requests related to preferential regimes, transfer pricing, unilateral advance pricing agreements (APAs) not reflected on the accounting information, permanent establishment or companies and other conduit entities.
For purposes of this Resolution, two people will be deemed as related parties when:
- One of them has, directly or indirectly, at least 25% of participation in the capital or in the right to vote in the assemblies of shareholders or partners of the other; and
- A third person has a direct or indirect participation of at least 25% in both persons.
The additional information is set out in an annex to GR 4497/2019 will require additional information such as name, Tax ID, tax residency jurisdiction and address of each of the entities participating on the binding ruling, intermediate controlling entities and ultimate beneficial owner, direct or indirect participation percentage, country of residence and Tax ID of permanent establishments located abroad and owned by local residents, in the case of companies and other conduit entities, the name, Tax ID, country of tax residence and address of the beneficial owner of the income.
The resolution came into effect from 30 May 2019, and applicable to binding rulings filed as of 7 June 2019.
