Transfer Prices: AFIP Established a Registry for Export Agreements on Publicly Listed Non-Agricultural Goods

The procedure, terms and conditions to register export contracts of publicly listed agricultural goods in which applicable transactions are carried out by a broker located, incorporated, domiciled, or residing in a non-cooperating or low/no-tax jurisdiction had already been established under a prior AFIP resolution (General Resolution No. 4,653).

Now the new AFIP General Resolution (i.e. No. 4,837) establishes an obligation to report export contracts of non-agricultural publicly listed goods in which applicable transactions are carried out by a broker in non-cooperating or low/no-tax jurisdictions.

 “Publicly listed goods” are defined as tangible products whose prices are widely or publicly known and negotiated in transparent markets, stock exchanges or other similar markets, whether national or international (including available prices or indexes recognized and published by public or private statistics-gathering or price-setting agencies, among others), provided that these prices or indexes are usually used as market references by independent parties to set international commercial prices on goods exchanged in the Argentine market.

Contracts have to be registered by 11 a.m. of the day after their signing, and duly registered by means of a sworn affidavit consisting of a form known as F.2669. In addition, certain mandatory supplementary information has to be reported no later than 7 days via form F. 2670.

Contracts will only be subject to annulment in exceptional cases in the event of force majeure or acts of God that are not attributable to the exporter, provided supporting documentation is submitted.

Annulments are processed via form F. 2671. But prior to submitting the form, taxpayers are required to present all supporting documentation proving there is good cause for annulment. “Good cause for annulment” is when the performance or continuation of the operation is rendered impossible on the count of permanent and insurmountable cases of force majeure or acts of God that cannot be attributed to the exporter. Furthermore, force majeure or acts of God are defined as events that are either unforeseeable or, if foreseeable, are unpreventable.

The AFIP may request any supplementary documentation or clarifications it deems necessary to verify whether income tax law requirements, regulations and the Resolution were met.

The provisions stipulated under General Resolution No. 4,837 will enter into force on October 21, 2020. For all contracts signed before October 20, 2020 and involving exports after that date, the Resolution grants a 10 business-day grace period to submit all pertinent documentation.