To improve the nations’ tax cooperation, the Argentinean government and the U.S. government inked a data sharing agreement.
The agreement, which was signed by Marc Stanley, ambassador of the United States, and Sergio Massa, minister of economy of Argentina, will enable the Argentine national tax authority to obtain data from accounts and trust beneficiaries of Argentines living in the United States.
The national tax authority will be able to get information from accounts and societies run by Argentine citizens overseas thanks to an agreement the Argentine government made with the United States about automatic tax data sharing.
The agreement, which was signed on December 5 by Sergio Massa, the minister of economy, and Marc Stanley, the American ambassador to Argentina, suggests a significant rise in the amount of data that would be shared between the Internal Revenue Service and the Argentine tax authority (AFIP) (IRS).
A comparable agreement between the two nations was inked in 2017 as part of the Foreign Account Tax Compliance Act (FATCA), but it had a different operational structure and information sharing was handled on an individual basis.
Due to these restrictions, according to Massa, they were only able to get information from 68 citizens this year.
As part of the procedure to be followed, the tax regulators from both nations will need to organize systems to share this data, which will include joint databases.
It will contain details on Argentine nationals who, both individually and as members of corporations or trusts, signed their declaration of foreign status when they deposited money into an account in the US.
Massa wants to supplement the deal, which becomes effective on January 1, with new legislation that permit residents to legitimately transfer their assets and funds to other nations but also punish money laundering and capital gains tax evasion.