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General Resolution No. 4497/2019 (the "Resolution") was published in the Official Gazzette on May 30, 2019, amending the binding ruling (as established by Article 4 of Law No. 11,683) regulations.

Background

The Resolution is published within the context of the commitments reached by Argentina under Action 5 of the BEPS Program - which is a minimum standard with the purpose to battle harmful tax practices most efficiently - that sets forth the spontaneous and mandatory exchange of information with respect to agreements or commitments assumed by a tax authority with a specific taxpayer or a group of them, regarding their tax status and which can be used to support its tax activities.

Additional information to be filed

The Resolution establishes an obligation to file additional information when an Argentine resident or a foreign investor - that has one or more foreign related entities, files binding ruling requests related to preferential regimes, transfer pricing, unilateral advance pricing agreements (APAs) not reflected on the accounting information, permanent establishment or companies and other conduit entities.

For purposes of this Resolution, two people will be deemed as related parties when one of them has, directly or indirectly, at least a 25% participation on the stock or voting rights on the shareholders meeting of the other, or when a third party has, directly or indirectly, at least 25% of participation in the stock or voting rights on the shareholders meetings of the two first ones.

For purposes of meeting the obligations assumed upon implementing the exchange, the Resolution establishes an obligation to file a sworn affidavit with information about foreign related entities, such as (i) name, Tax ID, tax residency jurisdiction and address of each of the entities participating on the binding ruling, intermediate controlling entities and ultimate beneficial owner, direct or indirect participation percentage, (ii) country of residence and Tax ID of permanent establishments located abroad and owned by local residents, (iii) in the case of companies and other conduit entities, the name, Tax ID, country of tax residence and address of the beneficial owner of the income.

Entrance into force

The Resolution will enter into force as from May 30,2019, and will be applicable to binding rulings filed as from June 7, 2019.

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