The Customs Collection and Control Agency (ARCA), Argentine entity, submitted a draft general resolution for public comment that proposes to completely replace General Resolutions No. 4,717 and 5,010, which currently regulate the Transfer Pricing regime and certain international transactions in Argentina.
Unlike recent amendments—such as those introduced by General Resolution No. 5,798 in late 2025, which, among other things, significantly updated certain thresholds and simplified some formal obligations—the draft proposes a much broader revision of the rules applicable to the analysis, documentation, and adjustment of international transactions.
The text establishes that, if approved as proposed, its provisions would apply to fiscal years ending on or after December 31, 2025.
A framework built on lessons learned
The draft itself notes that, based on the experience gained in applying current regulations, ARCA deemed it necessary to clarify certain points, incorporate additional guidelines, and define in greater detail the scope of various provisions of the framework.
The result is a draft consisting of 68 articles and five annexes, which addresses aspects related to the characterization of transactions, comparability analysis, Transfer Pricing documentation, and certain transactions that require specific analysis, such as intra-group financing, intangibles, corporate restructurings, and international intermediaries.
The Most Notable Changes
One of the key aspects is the treatment of comparable companies that report operating losses.
Current regulations already include restrictions on the use of comparable companies with losses when such circumstances affect their comparability. However, the proposed legislation reinforces and clarifies this treatment by establishing specific criteria for identifying recurring operating losses.
Specifically, losses are considered recurring when they occur in the majority of the periods analyzed or when the average operating results for those periods are negative. The inclusion of a company under these conditions will require objective and sufficiently documented justification to demonstrate that the losses stem from circumstances specific to the business or the market and do not affect its comparability.
Another significant change is found in Annex V, which includes a 26-question questionnaire related to international taxation risks. Among other topics, the questionnaire addresses corporate restructurings, financial transactions, intangibles, international structures, and situations that could result in double non-taxation.
Greater Clarity on Intra-Group Financing
The bill also includes specific rules for financial transactions between related parties.
One of these rules establishes that the improvement in credit quality that an entity may obtain solely by belonging to a multinational group—without a specific, documented guarantee provided by another entity within the group—does not automatically generate the right to additional compensation.
This provision is particularly relevant for the analysis of guarantees, loans, and other intragroup financial transactions, as it requires distinguishing between an explicit guarantee and the benefit that may arise simply from belonging to the corporate group.
This criterion relates to the treatment of the so-called implicit group backing, which is also addressed in the OECD Guidelines on Financial Transactions.
A Significant Change in the Adjustment Rules
One of the most significant aspects of the bill is found in Article 47, which establishes an explicit restriction on making downward tax adjustments to prices, consideration amounts, or profit margins corresponding to the transactions under review.
According to the proposed text, these downward adjustments could only be made when they result from a mutual agreement procedure conducted under a double taxation treaty signed by Argentina.
This provision would limit a taxpayer’s ability to unilaterally reduce its taxable base through a Transfer Pricing adjustment.
In general terms, this approach bears similarities to the regulation enacted in Chile through Law No. 21,713, which restricts self-adjustments that result in a reduction of the tax base or an increase in the tax loss. However, the scope and operation of both provisions must be analyzed within their respective regulatory frameworks.
What should multinational groups with operations in Argentina consider?
The public comment period for the draft has concluded. Therefore, the text should not be understood as a regulation currently in effect or as an open consultation, but rather as a proposed regulation whose development should be closely monitored.
Until a final general resolution is published to replace the current regulations, multinational groups with related-party transactions to or from Argentina should assess in advance how the proposed rules might affect their Transfer Pricing policies and documentation.
Among the aspects warranting special attention are:
- the use of comparables with operating losses;
- intragroup financing transactions and the treatment of implicit guarantees;
- restructurings and other international transactions included in the risk questionnaire; and
- the limitation on downward tax adjustments.
It is also important to note that the bill stipulates that its provisions would apply to tax years ending on or after December 31, 2025, if approved as currently drafted.
At TPC Group, we are closely monitoring the progress of this proposed ARCA regulation and analyzing its potential effects on the Transfer Pricing policies and documentation of multinational groups with operations in Argentina.