In an increasingly demanding tax environment, compliance with the Transfer Pricing regime in Argentina has become critical for companies with international operations.
General Resolution 4717, issued by the AFIP (Administración Federal de Ingresos Públicos – Federal Administration of Public Revenue), establishes the rules, obligations, and technical criteria that taxpayers must follow to support their transactions.
This regime not only regulates related-party transactions but also certain independent-party transactions and those in tax havens, significantly expanding its scope.
Scope of the Regime: Covered Transactions
The regulations apply to:
- Importand export transactions, including those among independent parties when they exceed certain thresholds
- Foreignrelated-party transactions
- Transactionswith permanent establishments
- Transactions with non-cooperative or low-taxjurisdictions
These transactions must comply with the Arm’s Length Principle, demonstrating that they were conducted under conditions similar to those prevailing in the market.
Entities Obligated and Control Approach
The regime applies to income tax taxpayers engaged in relevant international transactions.
Likewise, it incorporates criteria such as economic dependence (e.g., the existence of one single provider or customer), extending relation presumptions.
It reinforces a risk-based audit approach, in which the authority analyzes not only the legal form but also the economic reality of the transactions.
Methodology and Technical Analysis
GR 4717 establishes clear guidelines for implementing Transfer Pricing methods:
- Useofthe comparable price method, including adjustments for close dates
- Applicationof interquartile ranges and the median to determine market values
- Possibilityof using alternative methods in the absence of suitable comparables
In complex transactions, such as the transfer of intangibles or unlisted equity stakes, financial methodologies such as the discounted cash flow (DCF) method are permitted if duly justified.
Documentation and Supporting Evidence
One of the pillars of the regime is the mandatory maintenance of robust documentation supporting transactions:
- TransferPricingstudy certified by an independent professional
- Workingpapers supporting prices, margins, and comparability criteria
- Detailedinformation on foreign counterparties
- Banking, contractual, andoperational documentation
In addition, evidence must be preserved to demonstrate the economic substance of the transactions and the correct determination of results.
Formal Obligations
Compliance with the regime includes filing:
- AffidavitFormF. 2668
- TransferPricingStudy
- MasterFile (for multinational groups)
- Digitalformswith certified signatures
Deadlines are determined based on the last CUIT (Clave Única de Identificación Tributaria – Unique Tax Identification Code) digit and, in general, must be met within six months of the fiscal year-end.
GR 4717 reflects a clear trend: Greater transparency, stricter documentation requirements, and an approach aligned with international standards.
Companies must no longer merely comply; they must also technically demonstrate that their Transfer Pricing policies reflect their economic reality.
At TPC Group, we assist organizations in fully complying with GR 4717, from preparing studies to implementing policies aligned with the Arm’s Length Principle, helping to manage tax risks in an increasingly challenging environment.
Source: AFIP