WSG Article: Tax on Corporate Lending and Bond Issues in Argentina: Overview

Tax on Corporate Lending and Bond Issues in Argentina: Overview

March, 2015 - Santiago L. Montezanti, Ezequiel Martínez Iriarte and Enrique López Rivarola

Q&A provides a high level overview of finance tax in Argentina and focuses on corporate lending and borrowing (including withholding tax requirements), bond issues, plant and machinery leasing, taxation of the borrower and lender when restructuring debt, and securitisations. The Q&A is part of the global guide to tax on transactions. For a full list of jurisdictional Q&As visit www.practicallaw.com/taxontransactions-mjg.

Tax authorities.

1. What are the main authorities responsible for enforcing taxes on finance transactions in your jurisdiction?

At the federal level, the tax authority is the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos). At the provincial and municipal levels, there are local tax authorities for each province or municipality.

2. Is it possible or necessary to apply for tax clearances from the tax authorities before completing a finance transaction? Circumstances for obtaining clearance

It is possible to obtain clearance; however, it is not necessary. Local regulations grant taxpayers the possibility to submit a binding consultation to the Tax Authority before a given transaction is performed, provided that several formal requirements are met. The resolution issued is binding for both the Tax Authority and the taxpayer until any of the following occur: The applicable legislation is amended. The Tax Authority revokes its opinion and gives notice of its revocation to the taxpayer (the revocation produces effects as from the notice date). The taxpayer appeals the resolution and, as a result of it, the Tax Authority revokes it. Issues relating to double taxation treaties, withholding or collecting regimes or issues that have been raised in a tax audit or tax assessment procedure cannot be consulted under this procedure. Taxpayers can also submit a non-binding consultation. The resolutions of these consults are not binding for the Tax Authority. However, if the criteria followed in the resolution is modified by the Tax Authority and a claim is made, it is less likely that a penalty will be applied to the taxpayer. (...)

Footnotes:

Reproduced with permission from Thomson Reuters. This article was first published in Practical Law: MULTI-JURISDICTIONAL GUIDE 2015/16 (published in 2015).

For further information please visit www.global.practicallaw.com/2-521-7710?q=tax

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Tax on Corporate Lending and Bond Issues in Argentina: Overview

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