ArgentinaArgentina

Legal ReferenceArticles 9, 16 and 17, 106, 126, 127, Income Tax Law N° 20.628 t.o. 2019 and its amendments (hereinafter ITL)

Under Argentina’s legislation, the OECD Transfer Pricing Guidelines (TPG) are seen as recommendations or guidelines which may serve as source of interpretation.

Legal ReferenceArticle 18, ITL; Article 14, Decree N° 862/2019; Article 3, General Resolution N° 4717/2020 and its amendments (hereinafter GR N° 4717/2020)

Article 18 of the ITL provides that: “For the purposes set forth in this law, the relationship will be configured when an entity and individual or legal entities or other types of entities or establishments, trusts or equivalent figures, with whom that entity carry out transactions, are directly or indirectly subject to the management or control of the same individuals or legal entities or, for their participation in the capital, their degree of credit, their functional influences or any other, contractual or not, have the decision-making power to guide or define the activity or activities of the mentioned companies, establishments or other types of entities”. This Article is further regulated by Article 14 of the Regulatory Decree N° 862/2019 and Article 3 of General Resolution (GR) N° 4717/2020.

Legal ReferenceArticle 17, fifth paragraph, ITL; Article 29, Decree N° 862/2019; Articles 30 to 35, GR N° 4717/2020

Other methods: According to Article 17, fifth paragraph, ITL, Article 29 of Decree N° 862/2019 and Articles 34 and 35 of GR N° 4717/2020 and its amendments, other methods may apply to specific transactions (when the special circumstances of the transaction prevent the valuation of its assets, risks or functions), e.g. in the case of the transfer of valuable and unique intangible assets, specific assets or rights difficult to assimilate to other assets on the market, in the transfer of share or participation in the capital of companies that are not listed on the stock market or financial assets that do not have comparable contributions or transactions with or between independent parties, or in the case of the investment in unique assets that do not have comparable and whose activation only produces average results through the amortization of such assets.

• CUP (provided)
• Resale Price (provided)
• Cost Plus (provided)
• TNMM (provided)
• Profit Split (provided)
• Other (provided)

Legal ReferenceArticle 17, third and fifth paragraph, ITL; Article 29, 30 and 31, Decree N° 862/2019; Articles 34 and 35, GR N° 4717/2020

It will be understood as the most appropriate method to a transaction the one that best reflects its economic reality. To this end, it will be considered, among others, the method that: a) has better compatibility with the business and commercial structure; b) has the best quality and quantity of information available for its adequate justification and application; c) considers the most appropriate degree of comparability of linked and unrelated transactions, and of the companies involved in said comparison; and d) requires the lowest level of adjustments to eliminate the differences between the facts and situations compared.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)

Legal ReferenceArticle 17, third, fifth and seventh paragraph, ITL; Articles 31, 43, 44, 46 to 54, Decree N° 862/2019; Article 8, 24 and 40, GR N° 4717/2020; GR N° 4653/2019 and GR N° 4837/2020

As previously mentioned, the comparable price method (CUP) between independent parties will be considered the most appropriate one to value the transactions of commodities goods, either by reference to comparable uncontrolled transactions or by reference to the indexes, coefficients, or market values of goods. Additionally, certain specific considerations apply in the case of export operations involving commodities. In a commodity export transaction where an intermediary takes part of it in accordance with the conditions defined in the seventh paragraph of Article 17, ITL, it is mandatory to register the contract.

Legal ReferenceArticle 17, ITL; Articles 30 to 34, Decree N° 862/2019; Article 4 to 6, GR N° 4717/2020 (as amended by General Resolution N° 5010/2021)

The legislation largely follows the guidance on comparability analysis outlined in Chapter III of the TPG in Article 17 of the ITL and its amendments and Articles 30 to 34 of the Decree N° 862/2019. The comparability analysis must be done from the perspective of the local subject. However, when the profit split method is used, all related parties must be analysed.

Despite the fact that there are no regulations regarding the use of domestic comparables, it is a common practice to perform benchmarking including geographical criteria. In this sense, domestic comparables are preferred, but regional and worldwide comparables are also accepted, and they should not be automatically rejected just because of being non-domestic.

Legal ReferenceArticle 17, ITL; Article 42, Decree N° 862/2019; Article 29, GR N° 4717/2020

For cases of transactions between related parties or with those located in non-cooperative jurisdictions or jurisdictions with low or no taxation, where there are two or more comparable transactions, calculations based on the median and the interquartile range of prices or profit margins should be applied.

Legal ReferenceArticle 17, ITL; Article 30, 40 and 41, Decree N° 862/2019; Articles 6, 8 and 25, GR N° 4717/2020

The analysed transactions will be considered comparable if there are no differences that affect the price, profit margin or the amount of the consideration referred to in the methods established by law and when, as the case may be, such differences are eliminated from adjustments that allow a substantial degree of comparability. The law states the elements or circumstances to be taken into account for this purpose.

Legal ReferenceArticle 17, ITL; Article 29, 32 and 34, Decree N° 862/2019; Article 20 to 23 and 34, GR N° 4717/2020

When the local taxpayer contributes to the value chain of an intangible asset of which he is not the owner, pays or not royalties for its use, it should establish the form of remuneration that remunerates the development of functions, the control or use of assets or the assumption of risks that affect such contribution of value. The framework follows the guidance in Chapter VI of the TPG.

Legal ReferenceArticles 64, 85, item e) and 92, items h) and m), ITL; Articles 209, 210, 213, 220 and 229, Decree N° 862/2019

Only eighty percent (80%) of the remuneration paid for the exploitation of trademarks and patents to foreign entities will be deductible. This limitation shall apply to both independent companies and related companies. It is forbidden to deduct the amortization of goodwill, brands and similar assets, but it is admissible to deduct expenses on intangible assets that due to their characteristics have a limited duration (patents, concessions and similar assets).

Legal ReferenceArticle 17, ITL; Article 29, 32 and 34, Decree N° 862/2019; Articles 20 to 23 and 34, GR N° 4717/2020

There is no definition in Argentinian legislation of the concept of HTVI and neither has the approach proposed by the OECD in Chapter VI of the Transfer Pricing Guidelines been adopted. However, taxpayers are allowed to use other methods and techniques of justification that respect the arm’s length principle when special circumstances prevent the valuation based on arm's length methods.

Legal ReferenceArticle 17, ITL; Articles 32, 35 and 36, Decree N° 862/2019; Article 12, GR N° 4717/2020

In the analysis of transactions involving the provision of services between related parties certain elements must be considered, such as their nature and scope, the real need for their provision, the conduct of the parties, the terms of the provision and that the service has been provided or it is expected to provide a benefit or economic value to the entity that pays it.

Legal ReferencePoint a)1, Article 32 Decree N° 862/2019; Articles 4, 13 to 19 and Section B of Annex I, GR N° 4717/2020 (as amended by GR N° 5010/2021)

In the comparability analysis of financial transactions several elements that reflect the economic transactions and those that influence them should be taken into account, such as the amount of capital or loan, currency, repayment term, guarantees, debtor's solvency, interest rate, etc. The framework follows the guidance in Chapter X of the TPG.

Legal ReferenceArticles 53 and 85, ITL; Article 125, 190 to 200 Decree N° 862/2019

In the case of subjects included in Article 53 ITL, the interests of financial debts contracted with related parties will be deductible from the tax balance, such deduction should not exceed the annual amount established by the National Government (ARS 1,000,000), or the equivalent of 30% of the net profit for the year, whichever is greater.

Legal ReferenceArticle 17, ITL; Article 55, Decree N° 862/2019; Master file (MF): Articles 45 and Annex II GR N° 4717/2020 (as amended by GR N° 4733/2020 and 5010/2021); Local file (LF): Articles 43, 44, 46 and Annex I, GR N° 4717/2020 (as amended by GR N° 4733/2020 and 5010/2021); Country by Country Report (CBCR): GR N° 4130/2017 (as amended by GR N° 4332/2018); Specific transfer pricing return: Articles 47 to 49 (Form. 2668) GR N° 4717/2020

• Master file consistent with Annex I to Chapter V of the TPG (selected)
• Local file consistent with Annex II to Chapter V of the TPG (selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (selected)

Legal ReferenceArticle 17, ITL; Article 55, Decree N° 862/2019; Master file (MF): Articles 45, 51, 52 and Annex II GR N° 4717/2020 (as amended by GR N° 4733/2020, 4759/2020 and 5010/2021); Local file (LF): Articles 7, 12, 21, 24, 39, 43, 44, 50, 52, and Annex I GR N° 4717/2020 (as amended by GR N° 4733/2020, 4759/2020 and 5010/2021); Country by Country Report (CbCR): GR N° 4130/2017 (as amended by GR N° 4332/2018); Specific transfer pricing return: Articles 47 to 49, and 52 (F. 2668) GR N° 4717/2020 (as amended by GR N° 4733/2020, 4759/2020 and 5010/2021)

1. Master file (MF): Annual presentation in Spanish, due up to one year after the closing date of the fiscal year. 2. Local file (LF): Presented annually in Spanish, due up to six months after the closing date. 3. Country by Country Report (CbCR): Form 8097 due up to one year after the closing date. 4. Tax return (Form 2668): Presented annually in Spanish, due up to six months after the closing date.

Legal ReferenceArticle 57, GR N° 4717/2020; Articles 38.1, 39, 39.1 and 39.2 Tax Procedure Law N° 11.683 (t.o. 1998) and its amendments; Article 15, GR N° 4130/2017 (CbCR)

For non-filing or late filing of transfer pricing return, the taxpayer may be fined ARS 10,000 and up to ARS 20,000. Additional penalties apply for failure to comply with demands, ranging up to ARS 450,000. Non-filing or late filing of CbCR information can result in fines between ARS 80,000 and ARS 900,000.

Legal ReferenceGR N° 4130/2017 (CbCR – as amended by GR N° 4332/2018); Article 45 GR N° 4717/2020 (MF – as amended by GR N° 5010/2021); Articles 39 to 41, and 44 GR N° 4717/2020 (LF – as amended by GR N° 5010/2021)

Minimum thresholds apply for relieving the obligation to present the Transfer Pricing Local Study. For transactions with related parties abroad, the threshold is ARS 3,000,000 in total or ARS 300,000 individually. For Master File, entities belonging to MNE groups with total consolidated group revenues less than ARS 4,000 million are exempted.

Legal ReferenceArticles 4.1 and 205 to 217 Law N° 11.683 (t.o. 1998) and its amendments; GR N° 4497/2019; Argentina’s MAP Profile

Mechanisms include Rulings, International Compliance Assurance Programme (ICAP), and Mutual Agreement Procedures (MAP). APAs are legislated but not yet regulated by decree.

• Rulings (selected)
• Enhanced engagement or cooperative compliance programmes (not selected)
• Advance Pricing Agreements (APA) (not selected)
• International Compliance Assurance Programme (ICAP) (selected)
• Mutual Agreement Procedures (selected)

• N/A (selected)

• N/A (selected)

Legal ReferenceTitle I, GR N° 5010/2021

GR N° 5010/2021 established a Simplified Regime for International Transactions (Form 2672) aimed at facilitating the filing of transfer pricing documentation by low-risk taxpayers that comply with certain conditions.

Yes. Year-end adjustments are required. Should the application of the transfer pricing methodology show that the prices, profit margins or compensations have not been agreed at arm's length, a tax adjustment for transfer pricing must be computed in the income tax annual return.

Legal ReferenceSee Argentina’s positions on Article 7 (paragraphs 1, 5 and 13) of the OECD Model Tax Convention

There are twenty-two (22) bilateral tax treaties in force following Article 7 as it read before 2010. One (1) tax treaty in force follows the Andean Pact Model: Bolivia.

• Article 7 as it read before 2010 (selected)
• Article 7 as it reads after 2010 (not selected)
• Other (selected)

Legal ReferenceArticle 16, ITL; Article 22 and 57, Decree N° 862/2019

No. The approach used is established in the domestic tax law.

Legal ReferenceArticle 16, ITL; Article 22 and 57, Decree N° 862/2019

Article 16 of the ITL and Article 22 of Decree 862/2019 provide that PEs must carry out their accounting records separately and determine their Argentinian source tax result in accordance with normal market practices between independent entities. Otherwise, net profit is determined on the basis of results obtained by independent companies in similar operations.

Legal ReferenceArticles 26 and 27, and Annex I, GR N° 4717/2020

Business restructuring: Articles 26 and 27 of GR N° 4717/2020 establish that when a business restructuring occurs, the local taxpayer is obliged to assume risks and the conduct must be considered as that of third parties. The Local File must include an economic analysis assessing the situation.

Legal ReferenceArticle 17, 19 and 20, ITL; Article 24 and 25, Decree N° 862/2019 (as amended by Decree N° 48/2023 and Decree N° 603/2024); GR N° 5306/2022; "International Operations" and “Non-cooperating Jurisdictions and low or no taxation Jurisdictions” microsite at Fiscalidad Internacional | ARCA

Relevant definitions for non-cooperating jurisdictions and jurisdictions of low or no taxation are provided in ITL Articles 19 and 20. GR N° 5306/2022 creates the “Complementary Information Regime for International Operations”. Argentina is also in the process of developing specific local regulations for ICAP and APAs.