- Advertisement -spot_img
Friday, January 27, 2023

Tax agreement with the United States: it will take effect only in 2024 and it is doubtful that Washington will actually report

The exchange will take place only in September 2024. But America has not made the same progress as other countries.

Economy Minister Sergio Massa spoke publicly expectations With the agreement signed with the United States on the exchange of tax information: they hope that more taxpayers will catch up and thus More dollars enter the reserves of the Central Bank. The minister had said this ten days back in a program at Nestor Kirchner Cultural Centre.

but Details that were known in the last hours about this deal Do not support the message broadcast by the economy In these last few weeks. so much because the details come out do not provide concrete and sufficient incentives so that tax evaders stop doing so, as well as About the dates and times of the agreement: Article 10, point 1, indicates that it shall enter into force on January 1 of the calendar year following the date of Argentina’s written notification to the United States, confirming that Argentina has completed the necessary internal procedures for entry into force (It has not happened yet although it will).

Specifically, it implies that information has to be exchanged It may not happen from 2022, but if the requirements are met, then from the year 2023, and that information It will be received only in September 2024.

,From that point of view, Immediate financial and macroeconomic effects will be small and below expectations Which was raised in public and private wartime. Only the 1042-S statement will be included.

Argentina and the United States signed a Foreign Account Tax Compliance Act (FATCA) agreement under the IGA 1 modality, as Washington has already established. With 114 countries.

The treaty is a general format that the Argentine and US negotiators implemented in Argentina in the same way as in other countries and that does not admit of exceptions. It is a domestic law of the United States and has external application through The US administration intends to tax its citizens even when they live and work in another country.

but it is whether the extent of reciprocity is in doubt In many countries that have signed this type of agreement. Charles Rettig, until November of this year the head of the IRS (Internal Revenue Service, the collection government agency in the United States equivalent to AFIP), told a legislative committee in April that the United States is receiving information from people who signed There are FATCA agreements, but what The United States is not providing information to its counterparts.

The issue of reciprocity in the exchange of information has also been the subject of strong criticism from the European Parliament. A report published in September reiterated an earlier complaint made in 2018 about the lack of reciprocity by the United States suggested by Rettig. Argentine tax expert Diego Fraga also believes that in the case of Mexico, which signed the FACTA agreement in 2014, it has not yet received automatic information.

possibly, The incoming information package will be to identify the owner of an account who is Argentine and is subject to income tax for the income received, the interest or the payment of dividends (flows). Balance will not be informed (stock).

The Treasury Department published on its page the fine print of the IGA 1A signed between Argentina and the US on Tuesday afternoon while the national team played against Croatia for the World Cup semifinals. FATCA was signed in 2010, but came into force in 2014.

see also

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here