Types of Tax Planning Included
The rule covers both national and international tax planning.
International Tax Planning
This type of planning includes any scheme, plan or other activity with advantages or any type of benefit is obtained for taxpayers involved therein and which involves the Republic of Argentina and another jurisdiction abroad.
Tax planning of this type will be considered to exist when any of the following situations are incurred:
- Use of companies to take advantage of double taxation avoidance treaties, adopting non-permanent measures and generating double non-taxation.
- Jurisdictions considered non-cooperative or low or no taxation are involved in tax planning.
- There is an asymmetries exploitation of the existing tax laws in two or more jurisdictions regarding the qualification of the subject or the operation, generating some kind of tax benefit.
- There is a double tax residence on the part of the individual, undivided estate, corporation, trust, legal instrument, or foreign entity.
- When a subject has rights according to his position as beneficiary, trustor, fiduciary, trustee of trusts, or similar constituted abroad.
- When they are included in the microsite “Tax Planning Information System”.
National Tax Planning
As in international tax planning, it includes any agreement, scheme, plan, or other action that is an advantage or type of tax benefit in favor of taxpayers who are part of it. However, this planning only covers the Republic of Argentina regarding its national taxes.
In order to identify them, the AFIP (Administración Federal de Ingresos Públicos – Federal Administration of Public Revenues) has published the types of planning in the microsite “Tax Planning Information System” on the AFIP’s website.
Tax Advantage or Benefit Rate
The tax advantage will be determined when there is a decrease in the taxable base or taxable matter of the taxpayers and/or their related parties, either directly or indirectly. Likewise, it is considered that a tax advantage will have been incurred when the taxpayer does not comply with the declaration required by the established information regime.
The parties obliged to make the declaration required by this regime shall be the following:
- Those taxpayers involved in tax planning under the regime.
- Tax advisors, whether individual or legal entities, when help, assist, advise, on any activity for the implementation of tax planning, even if they participate through third parties.
The tax advisor who relies on professional secrecy must notify the taxpayer through the AFIP website in the option “IPF Regime – Professional Secrecy”.
To file the information corresponding to tax planning, the obligated entity may do so in the following manner:
- By entering the AFIP website, in the “IPF Regime” service, which can be accessed with the Tax Code.
- On the basis of the “Web Service” through an exchange of information.
In both cases an affidavit form will be issued as proof of filing.
The deadline for reporting depends on the type of tax planning:
- National tax planning: It must be reported until the last day of the month following the end of the tax period.
- International tax planning: They must be reported 10 days after the beginning of its implementation, which must be considered from the moment the first steps are taken to carry it out.
In the case of tax planning implemented from January 2019 until October 20, 2020 or those implemented before 2019, but whose effects last until the entry into force of this regime, must be reported until January 29, 2021.
Penalties for Non-Compliance
Taxpayers and tax advisors who do not comply with this declaration may be liable to fines according to the Tax Procedure Law.
They may also be excluded from AFIP’s registrations.