Transfer Pricing en Argentina

Analysis of Transfer Pricing and the Impact of COVID-19

This technical report explores how multinational companies in Argentina must adapt their transfer pricing models to the post-pandemic reality. Key points include:

• Extraordinary Loss Adjustments: Analysis of the possibility for "low-risk" entities to report operating losses, provided they are properly substantiated through the analysis of comparable companies affected by the same environment.

  
  

• Judicial Precedents: A review of key rulings such as Toyota and Boehringer Ingelheim, which establish standards regarding the shared burden of proof between the Tax Authority and the taxpayer, as well as the validity of segregating costs due to idle capacity.

  
  

• New Tax Risks: The analysis addresses emerging risks such as the rise of agency or services permanent establishments due to travel restrictions for cross-border employees.

  
  

• Pandemic-Related Expenses: Evaluation of the financial impact of abnormal expenditures (sanitizers, protective gear, and control equipment) that are not part of the ordinary course of business and their treatment in financial statements.

  
  

• Business Restructurings: Warnings regarding the "exit fee" that the Argentine Revenue Service (AFIP) might demand when relocating functions or assets out of Argentina to jurisdictions with lower tax burdens.