Transfer Pricing in Argentina 1932-2015

ICTD Working Paper 63

45 Pages Posted: 23 Feb 2018

See all articles by Veronica Grondona

Veronica Grondona

Centro Cultural de la Cooperación

Andres Knobel

Tax Justice Network

Date Written: January 2017

Abstract

This document provides a review of the Argentine tax authority’s structure for dealing with transfer pricing in Argentina; a chronological review of the legislative transfer pricing framework; and a very extensive listing of the transfer pricing cases that have reached different court levels. The document also summarises some of the difficulties encountered in relation to the application of the arm’s length principle in Argentina; coordination with foreign tax authorities; and the regulatory changes expected following the reports resulting from the G20/OECD BEPS Action Plan. Argentine transfer pricing legislation has taken several turns over time, moving from a more restrictive pricing of exports and imports for income tax purposes to what is today internationally known as the Sixth Method for commodity valuation; and from an application of what is locally known as the ‘economic reality’ principle, a principle attempting to consider the economic substance over the contractual forms, to a transplantation into local legislation of the Organisation for Economic Co-operation and Development’s Transfer Pricing Guidelines based on the arm’s length principle. The consequences of these regulatory changes have been that lately more and more cases are being disputed at different court levels, and tax authorities seem to find it increasingly difficult to challenge multinational entities’ transfer pricing manipulation schemes and support their arguments in courts of law.

Keywords: Transfer Pricing, Argentina, Sixth Method, Arm’s Length, BEPS Action Plan

Suggested Citation

Grondona, Veronica and Knobel, Andres, Transfer Pricing in Argentina 1932-2015 (January 2017). ICTD Working Paper 63, Available at SSRN: https://ssrn.com/abstract=3120526 or http://dx.doi.org/10.2139/ssrn.3120526

Veronica Grondona (Contact Author)

Centro Cultural de la Cooperación ( email )

Avenida Corrientes 1543
Buenos Aires, C1042AAB
Argentina

Andres Knobel

Tax Justice Network ( email )

Argentina

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