Argentine tax authorities issued General Resolution (AFIP) 5306 (“RG 5306”) on December 27, 2022, which establishes a complementary reporting requirement for cross-border transactions (“RICOI” is its acronym in Spanish). It is effective for fiscal years ending since August 1, 2022, and it repeals the previous mandatory tax planning reporting requirement established in October 2020, which was successfully contested by several tax professional organizations since it became effective.

RICOI is to be fulfilled by Argentine corporate taxpayers only, provided that they enter into transactions with (i) foreign related parties, as defined under Argentine income tax law, or (ii) persons from non-cooperating jurisdictions or low-tax jurisdictions, as well as their foreign permanent establishments.

Transactions to be reported are those that can:

1. Give rise to a permanent establishment because:
   1. An Argentine person usually negotiates the fundamental elements of contracts entered into by foreign related persons.
   2. An Argentine person acts exclusively or almost exclusively on behalf of one or more foreign related companies.
   3. An Argentine person has a global activity through the combination of activities of two or more related companies that carry out complementary activities and form part of a single or related business.
   4. A foreign person carries out works, a construction, an assembly or an installation project, or supervision activities related to any of the aforementioned activities, through one or more contracts with related persons that have an aggregate term longer than six months.
2. Produce double non-taxation.
3. Transfer tax benefits between jurisdictions hybrid entities or instruments.
4. Avoid the exchange of information through CRS or FATCA.
5. Exclude the Argentine person from CbCr.
6. Qualify as indirect transfers of Argentine assets, subject to the Argentine tax on indirect capital gains.
7. Involve an economic transfer of capital through concessions to engage in any activities.
8. Qualify as a financial transaction implemented through a cross-border lease.
9. Generate payments to foreign persons by an Argentine non-profit organization.
10. Generate tax advantages through (a) back-to-back transactions, (b) the use of tax transparent entities, (c) double-dipping, or (d) cross-border payments to members of a multinational group that are not tax residents in any jurisdictions.

Failure to comply with RICOI is subject to the general Argentine tax penalty regime, which establishes fines of up to ARS 45,000. In turn, compliance with RICOI does not imply AFIP’s acceptance or rejection of the tax treatment applied by the relevant taxpayer to the reported transactions. Rather, it should be seen as a mechanism for AFIP to obtain more detailed information that may lead to a subsequent tax audit.