Argentina's tax authority, the Administración Federal de Ingresos Públicos (AFIP, the Federal Administration of Public Revenue), has introduced expanded reporting obligations for foreign entities with economic activity in Argentina. The changes took effect on January 1, 2026, with the first compliance deadline falling at the close of the second quarter of 2026. For international companies that have so far operated below the compliance radar, the window to act is narrowing.
Argentina's new tax reporting rules require foreign entities to file enhanced disclosures covering corporate income tax positions, withholding tax obligations, and permanent establishment status. Entities with Argentine-sourced income, intercompany transactions above defined thresholds, or a permanent establishment in the country are subject to the updated regime. The first reporting deadline falls at the end of June 2026.
This alert explains which business categories are caught, the threshold criteria that determine whether a foreign entity must file, and the immediate steps international companies should take before the deadline.
What has changed and when it applies
Argentina's tax legislation has long imposed corporate income tax on income sourced within the country. The new rules expand the reporting perimeter in three important ways.
First, foreign entities must now affirmatively declare their tax residency status under Argentine tax legislation. This applies whether or not a establecimiento permanente (permanent establishment) exists in Argentina. Previously, many entities relied on the absence of a formal local entity to avoid filing obligations. That position is no longer tenable.
Second, the rules introduce a mandatory disclosure regime for cross-border intercompany transactions. Payments for services, royalties, and financing arrangements between a foreign parent and an Argentine subsidiary trigger enhanced documentation requirements. These sit alongside existing transfer pricing rules and reinforce them.
Third, the scope of withholding tax reporting has been broadened. Argentine-sourced payments to non-resident entities – including dividends, interest, and service fees – must now be reported by both the paying entity and, where a local representative exists, the recipient entity. A failure to report on both sides is treated as a separate infraction under Argentine tax legislation.
The effective date is January 1, 2026. Transactions occurring from that date onwards fall within the new regime. Historical positions declared under prior rules are not grandfathered where they remain open to audit.
Foreign entities that have entered into a tax treaty with Argentina should note that treaty protections do not eliminate the reporting obligation. Treaty relief on withholding tax rates, for example, must now be claimed through the expanded disclosure form rather than assumed by default.
Which entities are affected and threshold criteria
The new requirements apply to foreign entities that meet one or more of the following conditions:
- Deriving Argentine-sourced income, regardless of whether a permanent establishment exists
- Holding, directly or indirectly, an equity interest in an Argentine company
- Entering into intercompany transactions with an Argentine-resident related party
- Receiving or making payments subject to Argentine withholding tax
- Operating through a branch, representative office, or agent in Argentina
The permanent establishment question is central. Under Argentine tax legislation, the threshold for establishing a taxable presence is interpreted broadly. A foreign entity that repeatedly concludes contracts in Argentina – even through an intermediary – may be treated as having a permanent establishment. This determination carries corporate income tax consequences beyond mere reporting.
Entities from countries that have an active tax treaty with Argentina benefit from treaty definitions of permanent establishment. However, AFIP has signalled that it will scrutinise treaty positions more closely under the expanded disclosure regime. Entities relying on treaty protection must document that reliance in detail.
Small-scale transactions are not automatically exempt. The reporting obligation attaches to the status of the foreign entity, not only to the volume of its Argentine activity. An entity that makes a single royalty payment to an Argentine counterparty, or receives a single dividend from an Argentine subsidiary, falls within scope.
For a tailored assessment of how these rules apply to your Argentine operations, contact us at info@ferrazwhitmore.com.
Immediate actions for international companies
The compliance deadline of June 30, 2026 leaves limited time for entities that have not yet begun their review. The following five steps should be initiated without delay.
1. Map Argentine exposure. Identify all Argentine-sourced income flows, intercompany transactions, and equity holdings involving Argentine entities. This mapping forms the foundation for every subsequent step.
2. Assess permanent establishment risk. Review whether any activity in Argentina – through agents, employees, or digital channels – meets the threshold for a taxable permanent establishment. If the position is arguable, document the analysis and prepare to disclose it.
3. Confirm tax residency classification. Under the expanded regime, each foreign entity must affirmatively state its tax residency position. Entities organised in jurisdictions with an active tax treaty with Argentina should verify that treaty eligibility can be substantiated.
4. Review withholding tax compliance. Confirm that all Argentine withholding tax obligations have been correctly identified, applied, and reported. Where reduced treaty rates have been applied, ensure that the documentation required under the new disclosure form is in place.
5. Engage local Argentine counsel before the deadline. The new forms require technical judgements on corporate income tax, permanent establishment status, and treaty eligibility. These are not administrative formalities. A lawyer in Argentina with experience in cross-border tax matters can materially reduce the risk of an adverse AFIP determination.
Companies with operations across multiple Latin American markets may also find it useful to review our analysis of parallel reporting developments in the United States, where similar cross-border disclosure trends are emerging.
For further detail on the corporate law implications of the new Argentine regime – including consequences for Argentine subsidiaries and branches of foreign groups – see our overview of corporate law matters in Argentina.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our tax law practice covers Argentine and broader Latin American tax legislation, corporate income tax structuring, withholding tax compliance, and cross-border treaty analysis. As a law firm in Argentina-focused matters, we work with international groups, institutional investors, and in-house legal teams who need results-oriented counsel across civil law systems. Our International Counsel for the Americas brings direct experience advising on Argentine tax reporting obligations, permanent establishment analysis, and intercompany pricing matters. To discuss how the new reporting requirements affect your entity, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.