strengthen cooperation between The agreement, signed by Argentina’s Economy Minister Sergio Massa and US Ambassador Mark Stanley, will allow the Argentine tax authorities to receive information from Argentine accounts and trust beneficiaries in the United States
Argentina strengthens tax regime with data-sharing agreement
The government of signed an automated tax data-sharing agreement with the United States. This allows the country’s tax authorities to receive the data from the accounts and the offshore Argentinean-controlled society. The agreement, signed on December 5 by Economy Minister Sergio Massa and US Ambassador to Argentina Mark Stanley, represents a significant increase in the amount of data shared between the Argentine Tax Authority (AFIP) and the Argentine tax authorities. . Internal Revenue Service (IRS).
Although the two countries signed a similar agreement as part of the Foreign Account Tax Compliance Act (FATCA) in 2017, they have different operational approaches and information sharing is managed on a case-by-case basis. was basic. Massa said these restrictions meant he could only receive information from 68 citizens this year.
Both tax authorities should convene a system for sharing this data, which would include a joint database as part of the protocol to follow.
Regarding the new system, Massa said:
That’s a big deal. This includes information about Argentine nationals who signed the Alien Declaration and signed as an individual or as part of a corporation or trust when depositing money into a US account.
In addition, Massa clarified that trust or societal income products are also reported as part of this agreement.
Complementary legislation
Massa aims to complement the agreement, which will take effect on 1 January, to allow citizens to legally transfer their assets and funds to other countries. We have new regulations that allow us to do that. He punishes money laundering and capital flight.
Massa explained the purpose of the new law:
We want to break down the notion that this is considered a witch hunt. I think… AFIP is to reduce the burden on those who pay taxes on a regular basis.
A bill proposed in the Argentine Senate in April would tax undeclared goods held offshore by Argentine citizens to pay part of Argentina’s debt to the International Monetary Fund. also requested to That same month, the head of AFIP, Mercedes Marco Del Pon, called for the creation of a global system for registering electronic money and cryptocurrency holdings. The supposed purpose is to prevent tax evasion.
Image Credits: Shutterstock, Pixabay, Wiki Commons