Argentina: Guidance implementing CRS regime
Guidance—General Resolution No. 3826—issued by the Argentine tax authorities (AFIP) implements new information reporting for banks and financial institutions pursuant to the OECD’s common reporting standard (CRS) regime, effective January 2016.
Background
Argentina agreed to early implementation of the new “automatic exchange of information” (AEOI) measures. Accordingly, the AFIP will exchange account information with 55 states through 2017. Beginning in 2018, account data will be exchanged with an additional 40 states, for a total of 95 countries.
Implementing guidance
General Resolution No. 3826 was published in the Argentine official gazette on 30 December 2015, and sets forth the reporting rules under which banks and financial institutions must report information on accounts held by non-resident individuals and entities on an annual basis. The AFIP will collect the account information in order to exchange it with tax authorities in other jurisdictions, pursuant to the CRS measures.
General Resolution No. 3826 provides that:
- All financial institutions (as defined under the CRS regime) will be subject to the new reporting requirements. For these purposes, the term “financial institutions” includes deposit-taking banks, custodial institutions, investment entities, and insurance companies. This broad definition also includes institutions governed by Argentina’s financial institutions law, as well as certain agents registered with the Argentine securities commission (CNV) such as negotiation, liquidation, and compensation agents, among others.
- Financial institutions that fall within the scope of the new regime must comply with the due diligence rules set forth by the CRS and must identify “preexisting accounts” (accounts existing as of 31 December 2015) and “new accounts” (accounts opened as from 1 January 2016). Due diligence and reporting rules differ depending on whether the account is pre-existing or new.
The guidance therefore applies with respect to accounts in existence as of 30 December 2015 or opened as from 1 January 2016.
Argentine banks and financial institutions must report accounts with balances greater than U.S. $100,000, and must report the account information on an annual basis. The AFIP also will obtain information about Argentine resident individuals and entities that have accounts in foreign financial institutions. This information will include account balances or value as of 31 December of each reporting year and, in certain cases, the amount of interest, dividends, and other yields attributable to the account. In addition, the AFIP will have access to the identifying information and tax residency data of the account holders or managers.
