There was no success in the negotiation for the signing of a bilateral intergovernmental agreement (IGA) between the Internal Revenue Service (AFIP) and the U.S. federal tax collection agency, the Internal Revenue Service (IRS), for the automatic exchange of financial information. This has frustrated the Argentine government’s expectations of receiving packaged online information on Argentines with financial accounts in the US.
In Latin America the automatic exchange of information with the U.S. is in force in Brazil, Colombia, Costa Rica, Honduras, Mexico, Panama, Peru and the Dominican Republic. Argentina’s interest in joining the club is logical.
USA has not adhered to the financial account exchange regime promoted by the Organization for the Development of States (OECD), in which more than 100 countries participate, including Argentina, but has its own network, created as a consequence of the FATCA (Foreign Account Tax Compliance Act) regime implemented by that country as of July 1, 20141. IGA agreements are bilateral and have different scopes, depending on the IGA I and IGA II models. While IGA I allows for reciprocity, the obligations are not symmetrical, as the level of detail and extent imposed on financial institutions in the other reporting country is much greater than that applied to U.S. financial institutions.
- Insights·International operations·Tax