Argentina – Transfer Pricing (2025)

Legal framework and scope

Argentina’s transfer pricing regime is principally grounded in the Income Tax Law No. 20,628 (t.o. 2019 and amendments, hereinafter ITL), its Regulatory Decree No. 862/2019, and administrative rules issued by the Federal Tax Authority (AFIP), notably General Resolution No. 4.717/2020 and subsequent amendments. The domestic law explicitly references the Arm’s Length Principle in Articles 9, 16, 17, 106, 126 and 127 of the ITL. The legal framework applies to residents and entities performing transactions with related parties domestically or abroad and sets out detailed valuation rules and information obligations.

Arm’s Length Principle and the role of the OECD Guidelines

The arm’s length principle is the cornerstone of Argentina’s transfer pricing rules and is embedded in Article 17 of the ITL. The OECD Transfer Pricing Guidelines (TPG) are treated in Argentina as recommendations and interpretative guidance that taxpayers and tax authorities may apply to support transfer pricing methods and analyses, although they do not supersede domestic law.

Definition of related parties

The relationship of related parties is defined in Article 18 of the ITL and further regulated by Article 14 of Decree 862/2019 and Article 3 of GR No. 4717/2020. In broad terms, a relationship exists when entities or persons are directly or indirectly subject to the management or control of the same individuals or legal persons, or when participation via capital, credit, functional influence or other contractual or non‑contractual means gives decision‑making power to direct the activities of the entities involved. The regulations enumerate specific cases, including: ownership of all or the majority of capital; common ownership structures where one subject has majority participation; possession of votes necessary to determine corporate will; common directors or administrators; exclusivity as agent, distributor or concessionaire; provision of technological property or technical knowledge that forms the basis of another’s activities; joint participation in unincorporated associations with significant influence over pricing; preferential contractual clauses vis‑à‑vis third parties; significant participation in business policies; existence justified only in relation to another (sole or principal supplier/client situations); substantial provision of funds or guarantees; responsibility for losses or expenses of another; directors or officers receiving instructions from another; or management being granted to a minority participant. These objective scenarios, as set out in the cited provisions, constitute the legal test for relatedness.

Methods and the criteria for application

Argentine law recognizes the standard transfer pricing methods: Comparable Uncontrolled Price (CUP), Resale Price, Cost Plus, Transactional Net Margin Method (TNMM), and Profit Split, and allows the application of other methods when special circumstances prevent valuation using the ordinary methods (Article 17, fifth paragraph ITL; Article 29 Decree 862/2019; Articles 30–35 GR No. 4.717/2020). There is no rigid statutory hierarchy; instead, the law prescribes selecting the “most appropriate method” for each transaction, understood as the method that best reflects economic reality. Criteria for selecting the most appropriate method include compatibility with the business and commercial structure, quality and quantity of available information, the degree of comparability of transactions and companies, and the method requiring the least extent of adjustments. The CUP method is regarded as particularly appropriate for commodity transactions when comparables or market indices are available (Article 17 ITL; Articles 29, 30–31 Decree 862/2019; Article 35 GR 4.717/2020).

Comparability and ranges

Argentina follows comparability principles consistent with Chapter III of the OECD TPG and requires transaction‑by‑transaction analysis, assessing performance and execution conditions. Transactions are comparable when there are no differences that substantially affect price, profit margins or consideration, or where such differences can be removed by reasonable and justifiable adjustments to achieve a substantial degree of comparability (Article 17 ITL; Articles 30–34 Decree 862/2019; Articles 4–6 GR No. 4.717/2020). Domestic comparables are preferred when available and not materially different or when differences can be adjusted (Article 38 Decree 862/2019). Where two or more comparables exist, statistical measures such as the median and the interquartile range are applied to determine arm’s length remuneration (Article 17 ITL; Article 42 Decree 862/2019; Article 29 GR No. 4.717/2020). Comparability adjustments are required whenever relevant differences affect price, margin or consideration (Articles 30, 40, 41 Decree 862/2019; Articles 6, 8 and 25 GR No. 4.717/2020).

Documentation and reporting requirements

Argentina mandates transfer pricing documentation aligned with BEPS three‑tiered documentation: Country‑by‑Country Report (CBCR), Master File and Local File. CBCR is governed by GR No. 4130‑E (amended by GR 4.332/2018) and must be filed using Form F.8097 in Spanish. The CBCR filing deadline is up to one year after the end of the fiscal year to which the CBCR relates for the Ultimate Parent Entity (UPE). Notification 1 (Form F.8096) is due up to the third month after the UPE’s fiscal year end, and Notification 2 (Form s/N) must be filed within the second month following the expiry of the CBCR filing deadline when the CBCR is filed in another jurisdiction. The Master File is regulated in Articles 45 and 46 (Annex II) of GR No. 4.717/2020 (amended by GR 4.733/2020, GR 4.759/2020 and GR 5.010/2021) and must be filed annually in Spanish up to one year after the reporting fiscal year end. The Local File (Transfer Pricing Study) is governed by Articles 43 and 44 (Annex I) of GR No. 4.717/2020 and must be filed in Spanish up to six months after fiscal year end. The transfer pricing return (Form F.2668) is annual and also due up to six months after fiscal year end. These filing obligations apply to resident entities that are part of MNE groups, subject to specified thresholds.

Key exemptions and thresholds are as follows: Master File requirement does not apply to entities that belong to MNE groups whose consolidated group revenues in the preceding fiscal year are less than ARS 4,000,000,000 (threshold applicable for fiscal years ending on or after 31/12/2020; previous threshold was ARS 2,000 million). Additionally, Master File is not required if related‑party transactions with foreign parties in the fiscal year do not exceed ARS 3,000,000 in aggregate or ARS 300,000 individually. Local File obligations may be relieved where total related‑party transactions with foreign parties are less than or equal to ARS 3,000,000 in the fiscal year, or below ARS 300,000 per transaction (applicable for fiscal years ending on or after 31/12/2020; previous transitional thresholds differed). For CBCR, MNE groups with consolidated revenues below EUR 750 million are exempt. Where no changes exist relative to the previously filed Master File, taxpayers may substitute a sworn statement certifying unchanged information together with financial statements (applicable for fiscal years ending on or after 31/12/2020).

All documentation must be kept in Spanish and filed within the deadlines above. The legal basis for documentation and filing obligations includes Article 17 ITL, Article 55 Decree 862/2019, GR No. 4130‑E, and Articles and Annexes of GR No. 4.717/2020 as amended.

Penalties and compliance incentives

The law prescribes specific penalties for documentation and filing failures. Failure to file or late filing of the transfer pricing return can result in fines from ARS 10,000 up to ARS 20,000. If AFIP issues a demand to file and the taxpayer still fails to comply, the fine is ARS 45,000 per failure. Taxpayers with gross revenue above ARS 10 million may face an additional penalty of up to ARS 450,000 after the third demand. Failure to timely or accurately report membership in an MNE group can incur fines between ARS 80,000 and ARS 200,000. Failure or late filing of the CBCR (F.8097), or filing false information, triggers penalties between ARS 600,000 and ARS 900,000. Non‑compliance with AFIP requirements can also result in fines between ARS 180,000 and ARS 300,000. These penalties are provided in Article 57 of GR No. 4.717/2020 and in the tax procedural framework (Articles 38.1, 39, 39.1 and 39.1.05 of Tax Procedure Law 11.683 t.o. 1998) and GR No. 3.985 (SIPER). Non‑compliance raises the taxpayer’s risk profile for further scrutiny.

Safe harbours and simplification measures

Argentina does not maintain broad safe harbour rules for specific industries or transaction types. However, GR No. 5.010/2021 introduced a Simplified Regime for International Transactions (Form 2672) intended to streamline transfer pricing documentation for low‑risk taxpayers meeting certain conditions. Entities required to file a Master File or those part of MNE groups obliged to file a CBCR are ineligible for this simplified regime. The simplified regime applies for fiscal years ending on or after 31 December 2020.

APAs and MAPs; procedures and timing

Mutual Agreement Procedures (MAPs) are available and are processed in accordance with bilateral tax treaties and domestic procedural rules. The Argentine procedural code contemplates Advance Pricing Agreements (APAs) in principle (Article 217 and Articles 205–217 of Tax Procedure Law 11.683 t.o. 1998), but APAs lack implementing regulation by decree or administrative resolution; therefore, there is currently no formal APA program in operation, and key features such as APA duration and whether rollback is permitted remain undefined. MAPs, by contrast, operate under the applicable bilateral treaties and the domestic procedural provisions.

Sanctions and other administrative considerations (secondary adjustments, re‑characterisation, year‑end adjustments, PEs)

If transfer pricing analyses indicate that prices, margins or considerations are not at arm’s length, taxpayers must reflect the corresponding fiscal adjustment in their annual income tax return (year‑end adjustments). Argentina’s rules do not provide for a blanket secondary adjustment mechanism in all cases as a single administrative step; treatment of secondary adjustments depends on administrative practice and case‑by‑case assessment. Concerning Permanent Establishments (PEs), Argentina has incorporated the Authorised OECD Approaches (AOA) into domestic law (Article 22 ITL; Articles 58–64 Decree 862/2019) and has updated treaty positions in recent years in line with BEPS Action 7 in several treaties. Argentina signed the MLI in June 2017, although some approvals are pending; the domestic law contains rules aligning PE definitions and attribution of profits with the updated approaches.

Intangibles (excluding commodities and specific HTVI rules)

Argentina provides guidance for controlled transactions involving intangibles in Article 17 ITL and in Articles 29, 32 and 34 of Decree 862/2019, and in Articles 20–23 and 34 of GR No. 4.717/2020. When a local taxpayer contributes to the value chain of an intangible it does not own, it must establish remuneration that remunerates its functions, assets and risks. Payments of royalties or other remunerations must be justified under the arm’s length principle. R&D activities are evaluated by functional analysis to estimate the market value of contributions, and contract R&D is assessed for strategic decision‑making, monitoring, use of assets and risk control in order to determine appropriate market remuneration and contribution to the intangible’s value chain. There is no domestic legal definition of Hard‑to‑Value Intangibles (HTVI) and Argentina has not adopted a specific HTVI regime corresponding to Chapter VI of the OECD TPG; GR No. 4.717/2020 permits the use of other methods or techniques where special circumstances prevent valuation under ordinary methods, but no specific HTVI rules are codified.

Other tax rules affecting intangibles include limits on deductibility: under Article 64 and Article 92 (items h and m) of the ITL and Articles 209, 210, 213, 220 and 229 of Decree 862/2019, only eighty percent (80%) of remuneration paid for exploitation of trademarks and patents to foreign entities is deductible. Amortization of goodwill, brands and similar assets is not deductible, although expenses on intangibles with limited duration (patents, concessions) are deductible. For recipients resident in Argentina, 25% of amounts received for definitive transfers of assets may be deducted until recovery of invested capital; for royalties originating from temporary transfers of goods that suffer wear, deduction is allowed if costs were incurred domestically; if costs were incurred abroad, only 40% of royalties may be deducted. The ITL’s transfer pricing adjustments cannot be used to create deductions not permitted under substantive tax law.

Intra‑group services and low value‑adding services

Domestic rules address intra‑group services by examining the nature and scope of services, their necessity for the service recipient, the conduct of the parties, terms of provision and whether the service confers an economic benefit, as well as whether the services involve industrial/commercial experience, technical assistance or intangibles transfer (Article 17 ITL; Articles 32, 35 and 36 Decree 862/2019; Article 12 GR No. 4.717/2020). There is no specific simplified approach for low value‑adding intra‑group services equivalent to an explicit safe harbour (see Article 15 GR No. 4.717/2020 which confirms the absence of such a simplified approach).

Financial transactions

Specific guidance applies to comparability analysis for financial transactions taking into account capital amounts, currency, repayment terms and schemes, guarantees, debtor solvency, repayment capacity, interest rate, commissions, administrative charges and any other payments or charges (Article 32, point a) 1 Decree 862/2019; Articles 4 and 13–19 GR No. 4.717/2020). The provider’s economic capacity to grant and assume risks and the receiver’s capacity to repay must be demonstrated. Group implicit support that affects credit risk can be reflected in the use of the group’s credit rating to determine reference pricing when other data is unavailable. Tax rules outside transfer pricing limit the deductibility of interest (Article 52 and 85 ITL; Articles 125 and 190–200 Decree 862/2019): interest on financial indebtedness with related parties is deductible up to the annual amount established by the National Government (ARS 1,000,000) or up to the equivalent of 30% of net profit for the year prior to deducting those interest expenses and amortizations, whichever is greater; surpluses accumulated in the three immediately preceding fiscal years may be added to the deductible amount and interest that could not be deducted may be carried forward to the five subsequent years, subject to the statutory mechanism. Exemptions from these limitations include financial entities (Law No. 21,526), financial trusts under the Civil and Commercial Code of the Nation, and companies mainly engaged in leasing under specified terms. For tax purposes, where interest rate is not expressly determined, it is presumed unless proven otherwise that debt rates are not lower than those set by the Argentine National Bank for trade discounts, save for debts with legal updates where current applicable rates for that type of transaction apply.

Cost contribution arrangements and other specific regimes

There is no specific domestic legislation governing cost contribution agreements; Argentine case law accepts the use of OECD TPG for interpretation and guidance in the absence of explicit statutory rules.

Administrative approaches to dispute prevention and resolution

Argentina makes available rulings and Mutual Agreement Procedures (MAP) to prevent and resolve transfer pricing disputes. APAs are contemplated in law but not yet implemented by regulation; MAPs are operational under bilateral tax treaties and domestic procedural law (Articles 205–217 Tax Procedure Law 11.683 t.o. 1998; GR No. 4.497/2019). For APAs the lack of regulatory development means that duration, rollback and programmatic details are not defined.

Other legislative and administrative developments

GR No. 4.717/2020 introduced amendments that limit the acceptance of comparables reflecting operating losses (before or after adjustments), except when thoroughly justified as characteristic of the business or market. Due to COVID‑19, transitional measures for fiscal years ending between 31/12/2020 and 31/12/2021 were enacted: a three‑month extension for filing local transfer pricing documentation and a recommendation to use comparables’ financial information from the same period as the analyzed year, aligning with international recommendations regarding transfer pricing and COVID‑19. Relevant amendments include GR 4.733/2020, GR 4.759/2020 and GR 5.010/2021. The AFIP provides guidance through its “International Operations” microsite as an administrative resource.

Conclusion

Argentina’s transfer pricing framework is comprehensive and aligned in many respects with OECD guidance, combining statutory methods, an emphasis on the most appropriate method per transaction, detailed comparability and documentation rules, and quantified penalties. Important features include clear thresholds for Master File, Local File and CBCR filings, specific provisions for intangibles and financial transactions, and a formal MAP mechanism; however, APAs lack implementing regulation and HTVI is not separately defined in domestic law. In practice, the OCDE TPG remain an important interpretative source where domestic regulation is silent or permissive.

References

For further country profiles and the OECD transfer pricing resources see: https://www.oecd.org/en/topics/sub-issues/transfer-pricing/transfer-pricing-country-profiles.html