March 26, 2023

East Valley Times

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Massa will travel to the United States to sign an automatic exchange of information agreement between AFIP and the Treasury

Massa will travel to the United States to sign an automatic exchange of information agreement between AFIP and the Treasury. REUTERS/Erin Scott/

Minister of Economy, Serge Massa, The United States will move to sign an automatic exchange of information agreement between AFIP and Treasury. This is indicated by invincible evidence from the Palacio de Hacienda Infobay.

As a step before the agreement was signed, the government gave the minister full authority to sign it. Anthony Blinken.

The Power of Attorney is signed by the President Alberto Fernandez And it’s part of the tough negotiations the minister began in late August in Washington to open up this high level of tax information exchange that has caused a stir among Argentine account holders in the United States. In the states. Until now, a case-by-case exchange of information agreement has been in place, signed by the government Maurizio Macri In 2016.

A document giving Massa full powers to sign the contract
A document giving Massa full powers to sign the contract

“Gives full powers to the Minister of Economy, Mr. Sergio Tomás Massa, to sign on behalf of the Government of Argentina the Agreement between the Government of the Republic of Argentina and the Government of the United States to promote international tax compliance. And Fatka should be implemented.

“The current full authority will be vested in the Minister of Foreign Affairs, International Trade and Culture. Santiago Cafiero”. The date of the document is November 3 this year.

The minister will travel to Washington on a date set by the State Department to finalize the deal, which it hopes will be a fundamental step towards widening the tax base and combating evasion in compliance with the fund’s demands. Monetary Fund (IMF).

Driving body Kristalina Georgieva In his last report on Argentina, he defined it this way: “Continued progress is necessary in strengthening structures for public financial management, money transfer and central bank funds, and combating tax evasion and money laundering.”

The minister did not miss an opportunity this week among the many hearings he held to advance the feat: “The deal has already been signed,” he told some of his interlocutors, contradicting some tax experts who doubted its authenticity. Agreement.

In late October, he discussed the issue with a panel of US senators Infobay. The minister tweeted on the occasion that the cooperation agenda on energy and food security in the global context was discussed. “We also discussed the progress of the tax information exchange agreement between AFIP and the Internal Revenue Service (IRS),” he said.

Massa with Treasury Secretary Janet Yellen
Massa with Treasury Secretary Janet Yellen

The United States has a law called FATCA, the Foreign Account Tax Compliance Act), and seeks to compel all financial institutions to identify, classify, and report all customer accounts that have tax obligations in the United States. Companies or entities that do not comply with this obligation suffer a 30% withholding tax in the United States, among other sanctions.

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If signed this year, AFIP will begin receiving in September 2023, the OECD’s multilateral agreement – to which the US is not a party – and bilateral agreements signed by the country, data from accounts and goods in the US.

The agreement will provide AFIP with data on account holders for the previous financial year (if signed this year, AFIP will receive data for 2022 in 2023): name, address and tax identification number of the Argentinean account holder; account number; Identification of the US financial institution required to report; Interest, Dividend and other accrued income.

If the assets are in the name of a corporation, the IRS will not send this list of end beneficiaries because it is not contemplated by the provisions of the FATCA Act. however, Caesar Litvin He warned that many US-affiliated jurisdictions have already begun requesting this information due to pressures related to the fight against tax evasion and money laundering.

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