Worldwide transfer pricing reference guide 2014

Argentina (continued)
Transfer pricing penalties (continued)
at arm’s length. For non-compliance with the formal duties of furnishing information requested by the AFIP, the taxpayer faces fine of
up to ARS45,000. The same applies for a failure, to keep vouchers and evidence of prices in files on hand and to file tax returns upon
request. If tax returns are not filed after the third request, and the taxpayer has income amounting to more than ARS10 million, the fine
is increased from ARS90,000 to ARS450,000. Interest accrues on unpaid tax balances (as from 1 January 2011, the rate is 3% on a
monthly basis and 4% upon lawsuit filing).
Penalty relief
Concerning underpayment and fraud, if the non-recidivist taxpayer voluntarily amends the tax returns before receiving a special notice
(or vista) from the AFIP, the penalty is reduced to one-third of the minimum fine. If the tax returns are amended within 15 days of
receiving the notice, the penalty is reduced to two-thirds of the minimum fine. If the non-recidivist taxpayer accepts the adjustments
assessed by AFIP and pays the amounts due, the penalties are set at the minimum amount. If the taxes due do not exceed ARS1,000
and are paid voluntarily, or within 15 days from the special notice, then no penalty shall be applied.
Documentation requirements
Transfer pricing regulations require extensive contemporaneous documentation. Taxpayers are required to keep and eventually
submit all the documents evidencing prices, amounts received and profit margins that have been established on an arm’s length basis.
Furthermore, taxpayers are required to file an annual transfer pricing study for all transactions with related parties, deemed related
parties and independent parties located in tax havens.
Documentation deadlines
The transfer pricing documentation must be ready for filing with the AFIP by the date; the corresponding transfer pricing return filings
are due. An annual transfer pricing study, financial statements, Form 4501 and certification must be filed with the tax authority by the
beginning of the eighth month after the end of the fiscal year.
The annual transfer pricing return must also be filed by the end of the eighth month after the close of the fiscal year. However, transfer
pricing adjustments must be recognized as on the date the income tax return is due (i.e., fifth month after the fiscal year end).
The semi-annual returns must be filed by the end of the fifth month after the end of the relevant six month period. The annual return for
export and import transactions with independent parties not located in tax havens must be filed by the end of the seventh month after
the end of the fiscal year. Additionally, form 969 must be filed annually, within 15 days of the income tax return deadline.
Statute of limitations on transfer pricing assessments
The general statute of limitations for federal tax matters is five years for registered and registration-exempt taxpayers, and 10 years
for unregistered taxpayers. These periods begin on 1 January following the year in which the tax return is due. The moratorium regime
in place during calendar year 2009 and the voluntary declaration of the foreign exchange holding regime in place during calendar
year 2013 added one additional year each to the statute of limitations period for certain fiscal years. The taxpayer must keep the
transfer pricing documentation on hand, and provide it upon AFIP’s request for up to five years after the period established by the
statute of limitations.
Return disclosures/related party disclosures
Taxpayers are required to file the following documentation with the AFIP:
• An annual transfer pricing study
• Audited financial statements for the fiscal year, in case they have not already been filed before
• An independent certified public accountant’s certification of certain contents of the transfer pricing study
• Transfer pricing-specific returns
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