Argentina has published General Resolution 4717/2020 of 14 May 2020, which provides for the regulation of new transfer pricing compliance rules based on the changes introduced by Law 27,430 of 2017 and Decree 1170/2018. The General Resolution entered into force on 15 May 2020 and applies for fiscal years ending on or after 31 December 2018.
Some of the key points of the General Resolution are in relation to transfer pricing documentation and submission requirements. This includes existing requirements with some changes, as well as new requirements, which are summarized as follows:
Transfer Pricing Study
A Transfer Pricing Study (Local File) must be prepared in respect of related party operations where:
- Total operations carried out in a fiscal year with related parties exceeds ARS 30 million; or
- The taxpayer is part of a multinational group obligated to prepare a CbC report or a Master Report (Master File), and related party operations exceed ARS 3 million in the aggregate or exceed ARS 300,000 for an individual operation.
A Transfer Pricing Study must also be prepared in respect of operations with persons domiciled, constituted, or located in non-cooperative jurisdictions or with low or no taxation where the operations exceed ARS 3 million in the aggregate or exceed ARS 300,000 for an individual operation. This applies whether the persons are related or not.
Lastly, a Transfer Pricing Study may also be requested by the tax authority if justified by specific market conditions, risk generation, etc., provided that the operations exceed ARS 3 million in the aggregate or exceed ARS 300,000 for an individual operation. In such cases, the Transfer Pricing Study should be submitted within 45 days.
An annex to General Resolution 4717/2020 lists out the content requirements for the Transfer Pricing Study.
A Master Report (Master File) is required by members of a group obligated to prepare consolidated financial statements, with an exception where:
- The annual consolidated group revenue in the previous year does not exceed ARS 2 billion; and/or
- Related party operations do not exceed ARS 3 million in the aggregate or exceed ARS 300,000 for an individual operation.
An annex to General Resolution 4717/2020 lists out the content requirements for the Master Report.
New Affidavit Form F. 2668
A new affidavit form F. 2668 is introduced for the declaration of information previously submitted in various transfer pricing returns. Affidavit form F. 4501 concerning the Transfer Pricing Study and CPA certification must also be presented as part of affidavit form F. 2668.
Affidavit form F. 2668 must be submitted by persons that would be required to submit information on international operations or transfer pricing in either of the two previous years according to the new General Resolution 4717/2020 or General Resolution 1122/2001, as amended. The form must be submitted even if there are no operations to report.
Further, the submission of affidavit form F. 2668 must be made as long either of the following thresholds are met:
- Imports and exports of goods between independent parties exceed an annual amount of ARS 10 million; or
- Operations/transactions subject to the transfer pricing rules exceed an annual amount of ARS 3 million in aggregate, or ARS 300,000 for individual operations/transactions.
Affidavit form F. 2668 is submitted electronically via the "International Operations and Transfer Prices" service available on the AFIP website (http://www.afip.gob.ar).
The deadline for the submission of the Transfer Pricing Study and the new affidavit form F. 2668 is set between the 23rd and 27th day of the 6th month after the end of the fiscal year, depending on the last digit of the tax ID number. The deadline for the submission of the Master Report is set between the 23rd and 27th day of the 12th month after the end of the fiscal year, depending on the last digit of the tax ID number.
However, transitional rules are provided for the submission of affidavit form F. 2668, the Transfer Pricing Study, and the Master Report corresponding to the fiscal periods closed between 31 December 2018 and 30 April 2020. For these periods, the submission is required between the 10th and 14th of the months listed below, depending on the last digit of the tax ID number:
- for periods closing from December 2018 to May 2019, submissions due in June 2020;
- for periods closing from June 2019 to November 2019, submissions due in August 2020; and
- for periods closing from December 2019 to April 2020, submissions due in October 2020.
Further to the above, General Resolution 4717/2020 also provides additional clarification regarding various aspects of preparing transfer pricing documentation, including transfer pricing analysis, comparables, market ranges, application of transfer pricing methods, etc. Specific information is also provided regarding imports and exports with intermediaries, export of hydrocarbons, and business restructuring.