Introduction
Recently, the AFIP (Administración Federal de Ingresos Públicos – Federal Administration of Public Revenues), a public entity that will be replaced by the ARCA (Agencia de Recaudación y Control Aduanero – Customs Collection and Control Agency), published a unified key regulation for the RIGI (Régimen de Incentivo a las Grandes Inversiones – Incentive Regime for Large Investments), establishing strict guidelines for declaring information on Transfer Pricing. This regulation intends to promote transparency in large taxpayer transactions, regulating documentation and annual reporting obligations.
Main Requirements in the Transaction Report
The regulation requires a detailed annual report for each entity subject to the regime, covering critical aspects in the Transfer Pricing documentation, such as:
- Group Structure: The report must include the structure of all entities involved, highlighting their role, location, and operational links.
- Contracts and Reorganizations: Contracts on transfer of shares, mergers, and business reorganizations should be detailed.
- Supply Chain: The regulations require a description of the supply chain of the main products or services, explaining the service delivery arrangements and the Transfer Pricing policy employed.
- Intangible Assets and Strategies: It is mandatory to include a list of significant intangibles and the policies on Research and Development (R&D), as well as strategies for their development and exploitation.
- Transfer Pricing Method: Companies must support the Transfer Pricing method, explaining the rationale and adjustments applied to selected comparables and the range of values used.
New Transparency and Control Requirements
This new AFIP (later ARCA) regulation emphasizes the importance of transparency and rigorous control in intercompany transactions, promoting fairer and more efficient Transfer Pricing practices. In addition, the regulation focuses on the need for clear policies regarding intangible assets and marketing expenses, contributing to tax compliance and warding off avoidance risks.
Conclusion and Call for Action
Companies operating in Argentina with intercompany transactions must know and comply with these regulations. At TPC Group, our Transfer Pricing experts can assist you in adapting your strategies to comply with the new AFIP requirements. Please consult with us and ensure compliance with your international operations!
Source: Comercio y Justicia
