On June 18, 2021, was published in the Official Gazette the Federal Administration of Public Revenues (“AFIP“) General Resolution 5010/2021 (“RG 5010“), applicable to fiscal years ending on December 31, 2020 and thereafter, the main purpose of which is to establish the implementation of a Simplified Regime for International Transactions (“Simplified Regime”), and to extend for 3 (three) months the Transfer Pricing (“TP”) filing due dates, moving them to the end of next September.
Additionally, RG 5010 establishes that the Simplified Regime will be formalized through the filing of the affidavit form F.2672, and modifies the TP regulations (amending RG 4717/2020), especially providing that the forms F.2668, F.2672, and the Transfer Pricing Study corresponding to tax periods ended between 12/31/2020 and 12/31/2021, both inclusive, may be filed until the ninth month after the end of the respective fiscal year, according to the last digit of the taxpayer’s Tax ID (C.U.I.T.), from the 23rd to the 27th day of the month. The latter is established as a transitory provision and on an exceptional basis due to the COVID-19 pandemic. After that, the due dates will operate on the sixth month after the end of the fiscal year, from the 23rd to the 27th day.
Those who wish to adhere to the Simplified Regime must file the affidavit form F.2672 stating that their international transactions with related parties, or third parties located in non-cooperative or low tax jurisdictions or countries[1], have been agreed as if they had been carried out between independent parties, without the intervention of an international intermediary.
RG 5010stipulates that the following subjects shall be excluded from the Simplified Regime:
- Those that are part of Multinational Group of Companies (“MGC”) that are required to file the “Country by Country Report” (CbCR)[2], regardless of the jurisdiction in which they have to comply with such obligation; and/or
- Those obliged to submit the Master File (MF)[3] or, a statement in the form of an affidavit confirming there were no significant changes with regards to the MF filed with AFIP in previous years; and/or
- Those who operated with the intervention of International Intermediaries.
Thresholds and conditions established to be eligible for the Simplified Regime for International Operations (compliance with any of the following four situations):
1. Annual revenues lower than the highest amount established for the medium-sized category tier 1[4], whatever the activity, provided for in RG 220/2019, Annex IV, point A of the former Secretariat of Entrepreneurs and Small and Medium-sized Enterprises (“SEyPME“) and amendments thereto, together with:
1.1 Not having recurrent negative results in the Financial Statements corresponding to the fiscal period to be reported nor in the two immediately preceding ones;
1.2 Not having undergone a business restructuring process in the fiscal year to be reported nor in the two immediately preceding ones;
1.3 Not having performed transactions with related parties and/or parties located in non-cooperative or low tax countries and jurisdictions, involving royalties, license rights or research and development agreements for a total aggregate amount that exceeds 1% of the amount of revenues established in point 1;
1.4 Not having performed operations of rendering or acquisition of services with parties related to and/or located in non-cooperative or low tax countries and jurisdictions, for an aggregate amount that represents more than 1% of the total revenues of the local subject; and;
1.5 Not having entered into loan agreements with related parties located abroad.
2. Total amount of international transactions with related parties amounting to less than 2.50% of the total revenues, while meeting all of the following requirements:
2.1 No having performed transactions with related parties and/or parties located in non-cooperative or low tax jurisdictions or countries involving royalties, licensing rights or research and development agreements for a total aggregate amount that exceeds 0.50% of its total revenues;
2.2 Same requirement as point 1.1 above;
2.3 Same requirement as point 1.2, above; and
2.4 Not having performed import and/or export operations with the intervention of an international intermediary.
3. Being an exempt entity with the respective certificate of exemption in force.
4. Regarding import and/or export operations with independent parties, when the aggregate annual amount is higher than ARS10,000,000 and lower than ARS60,000,000.
The due date of the Simplified Regime will take place between the 23rd and the 27th day of the sixth month after the fiscal year end, according to the last digit of the taxpayer’s Tax ID.
Those who choose to adhere to the Simplified Regime will not be required to file the TP Study nor the annual affidavit form F.2668.
Amendments to RG 4717/2020 (General TP Regime)
1. Filing of the TP Study: must be complied with by those parties that carry out transactions with related parties or with third parties located in non-cooperative or low tax countries and jurisdictions exceeding the total aggregate amount equivalent to ARS3,000,000 or ARS300,000 per transaction, thus eliminating the previous ARS30,000,000 threshold established by RG 4717/2020, Section 44, subsection a), point 1.
2. Master File: those taxpayers that belong to MGC must file the MF when the following circumstances are jointly verified:
2.1 The total consolidated annual income of the MGC exceeds ARS4,000,000,000 in the fiscal year prior to the filing date; and
2.2 The transactions carried out with related parties abroad during the fiscal period under analysis, the total aggregate amount equivalent to ARS3,000,000 or the individual amount of ARS300,000.
In the event that there were no changes within the reported period with respect to what was included in the preceding MF submitted, the taxpayer may choose to submit a sworn statement ratifying said information and attaching a copy of the Financial Statements of the Ultimate Parent Company.
[1] Low or no tax Jurisdictions or Countries (commonly called Tax Havens): are those jurisdictions or countries whose income tax rate is less than 15%.
[2] An MGC is obliged to file a CbCR if its consolidated revenues are higher than EUR750 million.
[3] Argentine taxpayers obliged to submit MF: those belonging to economic groups whose UPC has obtained consolidated income for the fiscal year prior to the reporting period greater than the sum of ARS4,000,000,000 (four billion Argentine Pesos).
[4] Highest amount of the “Medium-size Category Tier 1”: as of 31 December 2020, was ARS1,821,760,000. Amount pursuant to Res. 69/2020 of the Secretariat of Small, Medium Enterprises and Entrepreneurs (”SSME&M”) (formerly “SEyPME”). This amount rises to ARS2,588,770,000 as of April 1st, 2021 onwards, pursuant to Res. SSME&M 19/2021.