Argentina, as a member of the OECD’s Base Erosion and Profit Shifting (BEPS) framework, has implemented Country-by-Country Reporting (CbCR) regulations to enhance tax transparency and combat profit shifting by multinational enterprises (MNEs). The Argentine Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos – AFIP) oversees compliance with CbCR under BEPS Action 13.

This guide provides an overview for CFOs and tax professionals of MNEs with operations in Argentina, covering CbCR applicability, reporting requirements, filing procedures, penalties, and additional resources.

Applicability of CbCR in Argentina

Criteria for Reporting

CbCR obligations in Argentina apply to MNE groups that:

• Have consolidated group revenues exceeding ARS 237 billion (Argentine pesos, equivalent to €750 million) in the preceding fiscal year.
• Include entities or permanent establishments located in Argentina.

Local Filing Requirements

An entity in Argentina may be required to submit a CbC report if:

• It is the Ultimate Parent Entity (UPE) of the group, or
• It is designated as the Surrogate Parent Entity (SPE), or
• The UPE’s jurisdiction does not require CbCR or does not have an effective information exchange agreement with Argentina.

Relevant Legislation

Argentina’s CbCR framework is governed by:

• General Resolution No. 4130-E/2017, which establishes reporting obligations for MNEs operating in Argentina.

Reporting Requirements

Content of the CbC Report

The CbC report must include financial and tax-related data for all jurisdictions where the MNE operates, including:

• Total revenues (related and unrelated party transactions),
• Profit or loss before tax,
• Income tax paid and accrued,
• Stated capital and retained earnings,
• Number of employees,
• Tangible assets other than cash.

Notification Requirement

• All entities within the MNE group operating in Argentina must notify AFIP about the identity of the reporting entity and its tax jurisdiction.

Submission Platform

• Reports must be filed electronically through AFIP’s online system using the OECD’s standardized XML schema.

Resource

Filing details and guidelines are available on the AFIP website: http://www.afip.gob.ar.

Filing Deadlines

• CbC Reports: Must be submitted within 12 months after the end of the MNE’s fiscal year.
  • Example: For a fiscal year ending 31 December 2023, the report must be filed by 31 December 2024.
• Notifications regarding the reporting entity must be submitted by the last day of the fiscal year.

Penalties for Non-Compliance

Penalties and Consequences

Failure to comply with CbCR regulations in Argentina may result in:

• Fines ranging from ARS 500,000 to ARS 5 million, depending on the severity of non-compliance.
• Increased scrutiny and audits by AFIP.
• Potential restrictions on conducting business in Argentina.

Mitigation Measures

Penalties may be reduced or waived if the taxpayer can demonstrate reasonable cause for non-compliance.

Confidentiality and Data Exchange

Data Protection

Information is exchanged only with jurisdictions that have an active tax treaty or information exchange agreement with Argentina.

AFIP ensures the confidentiality of the CbC report, using it strictly for tax risk assessment.