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13.4.4. APAs and Dispute Resolution Mechanisms

Advance Pricing Agreement (‘APA’)

Effective 1 January 2018, an advance pricing agreement regime has been introduced. The APA regime  allows taxpayers to enter into binding agreements with the tax administration regarding the criteria and methodology for the determination of the arm’s length price, profit margins, etc., based on the transfer pricing rules.

Currently, the APA program is not in place, and the duration of an APA or whether rollback is allowed or not is yet to be defined.

Mutual Agreement Procedure (‘MAP’)

Mutual Agreement Procedure (‘MAP’) is a procedure through which the Competent Authorities consult and interact to resolve international tax disputes and to avoid double taxation arising from actions of one or both of the contracting states resulting in taxation that is not in accordance with the applicable double taxation convention. Generally, MAP is followed for transfer pricing cases, anti-abuse provision claims, multilateral disputes, and multi-year resolution of cases.

Though the procedural regulation on MAP is not yet approved, a request can be made within three years or the time limit provided for in the tax treaty, from the notification of the measure that causes or might cause taxation not in accordance with the tax treaty.

Most of the tax treaties to which Argentina is a party provide for a MAP; however, tax treaties concluded with Bolivia, Brazil, Germany, France, Italy, and Switzerland do not include a provision that obliges the Competent Authority to make corresponding adjustments. It is expected to be amended by the Multilateral Instrument once it has entered into force for Argentina.