Local Report or Transfer Pricing Study – Form F. 4501
This is an Informative Affidavit for companies subject to transfer pricing regulations, the purpose of which is to determine whether transactions are conducted at arm’s length. It must contain a description of the organizational structure, strategic and business activities, as well as transactions with related parties. In addition, it must include financial information regarding the taxpayer subject to this requirement and the transactions or companies used as comparables in its analysis.
Mandatory
| TAXPAYERS WHO | AMOUNT OF TRANSACTIONS |
| Conducted transactions with foreign related parties | That exceed a total amount equivalent to three million pesos ($3,000,000). |
| That exceed the individual amount of three hundred thousand pesos ($300,000). | |
| Conducted transactions with parties domiciled in non-cooperative jurisdictions or jurisdictions with low or no taxation | That exceed a total amount equivalent to three million pesos ($3,000,000). |
| That exceed an individual amount equivalent to three hundred thousand pesos ($300,000). |
Deadline Schedule
The Transfer Pricing Study must be filed by taxpayers no later than the sixth month following their fiscal year-end, as determined by their Unique Tax Identification Number (CUIT). Accordingly, taxpayers whose fiscal year ends on March 31 must file their reports during the month of September:
|
DEADLINE |
TYPE OF OBLIGATION |
|
|
CUIT |
DAY* |
|
|
0–1 |
Through the 23rd inclusive | Affidavit Form F. 2668 and Transfer Pricing Study Form F. 4501. |
|
2–3 |
Through the 24th | |
|
4–5 |
Through the 25th |
|
| 6–7 |
Through the 26th |
|
| 8–9 |
Through the 27th |
|
*When the due dates indicated in the previous paragraph fall on a holiday or non-business day, they will be moved to the immediately following business days.
Master File
This is a detailed type of transfer pricing documentation that is mandatory for multinational enterprises (MNEs) when specific requirements are met. The Master File provides a high-level overview of the multinational group’s global structure and business activities. It also explains the global transfer pricing policies.
Its purpose is to provide tax authorities with an overview of the economic, legal, financial, and tax arrangements within a multinational enterprise.
Mandatory Nature
|
CONDITIONS |
| The group’s total consolidated annual revenue exceeds FOUR BILLION PESOS ($4,000,000,000.00) in the fiscal year preceding the filing; and |
| Transactions with foreign related parties exceed, in total for the tax period, the amount equivalent to THREE MILLION PESOS ($3,000,000.) or, individually, THREE HUNDRED THOUSAND PESOS ($ 300,000.-). |
Article 45 of General Resolution 4717-2020
Filing Schedule
It must be filed no later than the twelfth month following the month of its fiscal year-end, based on the last digit of the taxpayer’s CUIT:
|
CUIT |
0 – 1 | 2 – 3 | 4 – 5 | 6–7 | 8 – 9 |
| Day* | 23 | 24 | 25 | 26 |
27 |
*When the due dates indicated in the previous paragraph fall on a holiday or non-business day, they will be extended to the next business day.
Fines and Penalties
- Late Filing: Fines of up to $20,000 for Form 2668.
- Failure to file the Affidavits (DDJJ) and the Local PTR Report after a request by AFIP is subject to a fine of up to $45,000.
- If the request is repeated, fines may range from $90,000 to $450,000.
- Resistance to an audit, irregularities in tax addresses, failure to report international transactions, or failure to provide supporting information for prices agreed upon with related companies are subject to fines of up to $45,000 pesos.
- Failure to pay tax due to failure to file the DJ or to file an inaccurate DJ will be penalized with a fine of 1 to 4 times the unpaid tax, when such tax arises from international transactions between related parties.
- Failure to Pay Tax: Criminal Tax Law.
- Under the 2017 Tax Reform, the proposed regulations include penalties for failing to report to the AFIP membership in one or more Multinational Entity Groups.
- In addition, non-compliance would subject entities to non-monetary penalties, such as restrictions on importing, exporting, and accessing credit applications, among others.