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Monday, January 30, 2023

AFIP regulated information exchange agreement with US. ultimate keys

AFIP arrived on time with the regulations, and after the exchange of diplomatic notes, everything will be ready for exchange from 2024

AFIP regulated the Argentine part of the Bank Information Exchange Agreement with the United States, 14 days earlier than expected, Now all that’s left to do is swap countries Note through the Chancellors notifying this fact, And the agreement will come into full force on January 1.

AFIP Resolution 5303/2022, published this Friday in the Official Gazette, “regulates and adapts the information that current information agents must provide,” Felix Rolando of Andersen Argentina, referring to banks that have already been in 2017 With respect to another US citizen under FATCA, non-reciprocal.

Fixed Keys to the US Information Exchange Agreement

1. When will the US bank account information start coming?

The first for the notification’s arrival will be September 30 2024, as the text of the agreement published by the Treasury Department and the IRS, the US tax collection agency, specifies that the first shipment will be after the calendar year. effective date of agreement, and the latter is 2023.

2. For what period will the US State Department report?

Information that US banks will rotate in 2023What happened to the accounts of its Argentinian customers will only happen in about the year 2023.

Characteristics of what is reported and what is not reported

3. What data will be reported on bank accounts?

The Information Exchange Agreement covers only interest, dividends and other income from a US source, with significant exemptions, while the remaining amount will not be disclosed, so AFIP will not be able to demand taxes on personal assets.,

Too, will be a flat of US$ 50,000 For the amount of accounts to be reported.

Francisco Blanco from Allende and Bray recorded the following Matters in which accounts or activities in accounts shall not be reported,

    • Although the AFIP receives information about a fixed investment account, it will not include gains from trading, that is, from the buying and selling of stocks and bonds.,
    • Corporations that own a rental building do not have withholding tax, so the beneficial owner need not be listed on any IRS forms.
    • Las Companies used by programmers working for third countriesFor example, since they do not have the income from a US source deposited, they are not withheld and the ultimate beneficiary is not reported.

4. What happens in dealing with the ultimate beneficiary of the companies?

But, most important, however casual it is, is Traces met some consultants, along with their correspondents in Chile or ColombiaHow does the FATCA IGA Model 1 A agreement work in their countries, which Argentina has signed on to.

The agreement covers interest, dividends and other income

does he en practice, the US only reports the accounts of individuals, never of the companies owned by them. How is it accomplished? Acceptance of higher withholding of 30% in Form W8 of company income withholding as it exempts you from declaring you as the ultimate beneficiary,

AFIP’s official information on the resolution

AFIP established the mechanism with which banks must report annually. Tax information for US persons who have accounts in Argentina.

The regulation is the result of an agreement signed between the two countries to automatically exchange, with the aim of eliminating potential tax evasion and avoidance maneuvers through concealment, the data of Argentine or US citizens who have assets in other jurisdictions. – Declaration of assets.

From now on, Argentine financial institutions must submit once a year the identity of the account holder, the balance or value of the account at the end of the calendar year or at the moment immediately preceding closure, and the interest or dividends to the AFIP. investments received with those accounts,

processes differ Depending on whether they are pre-existing accounts on the date of entry into force of the agreementif they belong to individuals or legal entities, and the remaining amount.

AFIP established that Information must be submitted by Argentine financial institutions by June 30 of the year After that which matches the report. In this way, the agency will send information to the Internal Revenue Service (IRS) by September 30 of each year.

Just like that, AFIP will likewise receive tax information related to Argentina from its American counterpart who has assets in that country.,

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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