As published on step.org/industry-news, Wednesday 20 July, 2022.
Argentina’s tax administration has published a list of low- or no-tax jurisdictions for the purposes of tax implications under the Income Tax Law (Ley de Impuesto a las Ganancias).
The jurisdictions on the federal tax administration (Administración Federal de Ingresos Públicos, AFIP) list classify as low- or no-tax if they have a general corporate tax regime of less than 15 percent. However, AFIP notes that the list is not exhaustive and does not include jurisdictions with “special taxation schemes” under the provisions of the Law.
The list comprises 41 jurisdictions: Andorra, Anguilla, the Ascension Islands, the Bahamas, Bahrain, Bermuda, Bosnia and Herzegovina, the British Virgin Islands, Bulgaria, the Caribbean Netherlands (the BES Islands), the Cayman Islands, Cyprus, Estonia, Gibraltar, Guernsey, Hungary, Ireland, the Isle of Man, Jersey, Kosovo, Kyrgyzstan, the Labuan Islands, Lichtenstein, Macao, the Marshall Islands, Moldavia, Montenegro, Niue, North Macedonia, Palau, Paraguay, the Pitcairn Islands, Qatar, Switzerland, Timor, Tristán de Acuña, Turks and Caicos, the United Arab Emirates, the US Virgin Islands, Uzbekistan and Vanuatu.
There are certain tax implications for jurisdictions designated as low- or no-tax, as set out in Law 27,430. Transactions with these jurisdictions are not deemed arm’s-length for transfer pricing purposes and amounts due to them in consideration for transactions that trigger Argentine source income are deductible by the Argentine payor.
Transactions with the listed jurisdictions must also be reported via Argentina’s tax planning information regime as established by Resolution No. 4838/2020. Taxpayers must report the tax planning undertaken and explain how a tax advantage benefits any of the parties involved.