Argentina-Uruguay Exchange of Information ... - Ernst & Young

7 March 2013
International
Tax Alert
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Argentina-Uruguay
Exchange of Information
Agreement enters into
force; contains clauses to
avoid double taxation
The agreement between Argentina and Uruguay to exchange information on
tax and criminal matters and eliminate double taxation entered into force on
7 February 2013.
Both countries originally signed the Agreement between Argentina and
Uruguay for the Exchange of Tax Information and Method to Avoid Double
Taxation (the Agreement) on 23 April 2012. On 8 January 2013, the two
governments satisfied the notification requirements for the agreement to
enter into force. The Argentine government published the entry into force of
the Agreement in the Official Gazette on 5 February 2013.
As stated, its main purpose is the exchange of information on tax and
criminal matters. In addition, there is a mechanism to avoid double taxation
between both countries. In the case of Argentina, the Agreement applies
to income tax, tax on personal assets and minimum presumed income tax.
To eliminate double taxation, the Agreement allows a resident of a country
who has income subject to tax in the other country, to credit the tax paid in
the other country. The credit is limited to the tax paid on such income by the
taxpayer in its country of residency (calculated before the computation of the
credit). Similar provisions exist in relation to taxes on assets.

Moreover, the Agreement establishes a particular rule
for those cases in which a resident from one country
is paid by a resident of the other country for technical,
scientific, administrative or similar assistance. In these
cases, the taxpayer can credit the tax paid in the other
jurisdiction, regardless of where the income is actually
sourced.
The Agreement allows tax authorities to request relevant
information for the determination, implementation,
monitoring and collection of taxes, the recovery and
enforcement of tax claims, or the investigation and
prosecution of tax matters. However, the Agreement
does not allow purely speculative consultations (i.e.,
fishing expeditions). Hence, one country must have
actual suspicions regarding the taxpayer’s situation to
demand information from the other.
For criminal matters, the Agreement is effective 7
February 2013. For all other matters, the Agreement
is effective 7 February 2013, but applicable to fiscal
periods initiated during or after such date. When there is
no fiscal period, the Agreement applies to the collection
of taxes after 7 February 2013.
International Tax Alert
2

For additional information with respect to this Alert, please contact the
following:
Ernst & Young LLP, Latin American Business Center, New York
• Alfredo Alvarez +1 212 773 5936 alfredo.alvarez@ey.com
• Pablo Wejcman +1 212 773 5129 pablo.wejcman@ey.com
Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
• Carlos Casanovas +54 11 4510 2270 carlos.casanovas@ar.ey.com
• Gustavo Scravaglieri +54 11 4510 2270 gustavo.scravaglieri@ar.ey.com
• Ariel Becher +54 11 4510 2270 ariel.becher@ar.ey.com
• Pablo Baroffio +54 11 4510 2270 pablo.baroffio@ar.ey.com
• Florencia Fernandez +54 11 4510 2270 florencia.fernandez@ar.ey.com
Ernst & Young Uruguay, Montevideo
• Martha Roca +598 2 902 31 47 martha.roca@uy.ey.com
• Rodrigo Barrios +598 2 902 31 47 rodrigo.barrios@uy.ey.com
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