New Regulations Apply to Payments of Services Rendered by Non-Residents
On January 7, 2022, General Resolution 5135/2022 of the Federal Tax Authority (AFIP, for its acronym in Spanish) came into force. This regulation implements a new system to control payments to non-resident services providers through the "Integral Monitoring System for Payments to Non-resident Service Providers" (SIMPES).
All individuals, undivided estates and legal entities, regardless of the form they adopt, that must make payments to non-resident service providers on their own behalf or on behalf of third parties, or order payments to cancel their own or third parties' obligations are subject to the SIMPES regime. Freight services, passenger transport, travel-related and some credit card payments, government, and health services are exempted from the SIMPES regime.
Once the SIMPES declaration is submitted, AFIP will cross-check the information provided, compliance with tax return filings and the financial economic capacity of the declarer through the CEF regime (which stands for “Sistema de Capacidad Económica Financiera”) regulated in General Resolution No. 4,294.
The Argentine Central Bank published Communiqué "A" 7433, which requires financial entities to verify that the SIMPES declaration has been approved to allow access to the exchange market to the payor.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.