Argentina replaces its transfer-pricing and international-operations rules

A consolidated rulebook

The resolution applies to independent imports and exports, transactions with foreign related parties, permanent establishments, and dealings with entities in non-cooperative or low- or no-tax jurisdictions. It implements the international-operation rules in articles 9, 16, 17, 126 and 127 of the Income Tax Law and provisions of Decree 862/2019. Article 74 repeals General Resolutions 4717, 4733, 4759, 5010 and 5798 for the new application period, while preserving them for earlier fiscal years.^[1][2]

How the transfer-pricing analysis changes

The local entity is normally the tested party. A foreign tested party may be used only for specified services, statutory transactions and low-value import or export cases, and only where reliable audited or reconcilable information is available, fewer adjustments are needed and the foreign party does not use valuable or unique intangibles. Low-value services can use a 5% cost mark-up or ceiling, subject to the resolution’s 10% operating-expense or revenue limits and other conditions.^[1]

For related financing, the analysis must address the lender’s financial capacity, the borrower’s ability to service the debt, implicit group support and cash-pooling arrangements. Legal ownership of an intangible does not by itself determine entitlement to returns: the functional contribution to development, enhancement and risk must be remunerated. Cross-border restructurings can require arm’s-length compensation where local functions, assets or risks are transferred or reduced, and all covered transactions must be tested rather than a selected sample.^[1]

Thresholds and filing dates

Form F.2668 applies where annual independent imports and exports exceed ARS7.5 billion, or covered transfer-pricing transactions exceed ARS1.5 billion in aggregate or ARS300 million individually. A transfer-pricing study is generally required at ARS3 billion aggregate or ARS600 million individual covered transactions. The Master File thresholds are ARS500 billion of prior-year consolidated group revenue and ARS3 billion aggregate or ARS600 million individual foreign related-party transactions; the monetary thresholds are indexed annually.^[1]

The transfer-pricing study and F.2668, or the simplified F.2672, are due during the seventh month after year end according to the taxpayer identification-number schedule. The Master File or qualifying ratification note is due during the twelfth month. MNE groups should update tested-party choices, financing and intangible files, restructuring records and filing-threshold models before the first affected year closes.^[1]