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Argentina Signs Tax Information Exchange Agreement with Uruguay

Argentina
Argentina has signed a Tax Information Exchange Agreement and method for the Avoidance of Double Taxation with Uruguay. Taxand Argentina discusses what this will mean for taxpayers of the two jurisdictions.

The Agreement was executed with the purpose to provide the two countries with mutual assistance in the administration, investigation and application of local legislation regarding certain taxes and criminal tax issues.

In this regard, the exchange of information between both countries would be provided only on written request. Therefore this process will not be automatic.

However, the Agreement also provides a method for the avoidance of double taxation with respect to:
 

  • Income Tax
  • Minimum Presumed Income Tax
  • Personal Asset Tax

This means that taxpayers from either Argentina or Uruguay will be able to submit taxes paid in the opposite country as tax credit, although this deduction can never exceed the tax applicable in that country.


Your Taxand contacts for further queries are:
Ezequiel Lipovetzky
T. +54 11 5288 2951
E. ezequiel.lipovetzky@bfmyl.com

Maximiliano Yudica Bartels
T. +54 11 5288 2470
E. maximiliano.yudica.bartels@bfmyl.com

Taxand's Take


Argentina and Uruguay committed to provide mutual assistance in the administration, investigation and application of local legislation regarding certain taxes and criminal tax issues. As a result, Argentina and Uruguay will be obliged to report any relevant tax information (previously requested), corresponding to individuals or companies under a fiscal investigation. During recent years the Bilateral network of TIEAs celebrated by Argentina has significantly increased. Consequently, the Tax Authorities have more channels to fight against tax evasion, have control of transactions carried out by multinationals and determine their actual economic situation.

Taxand's Take Author

Ezequiel Lipovetzky