Argentina introduced new criterion for tax haven list

A list of the uncooperative countries and jurisdictions will be published on the website of the tax authority (AFIP) and will be regularly updated

An Executive Power Decree 589/2013, published in the Official Gazette of 30 May 2013 and in force from that date, amends the Regulatory Decree to the Income Tax Law (DRLIG) establishing a new criterion to define when a country or jurisdiction is considered a “low- or nil-tax country” in order to trigger the application of specific provisions in the tax laws.

The former criterion was reflected in an exclusive list of 88 countries and jurisdictions in article 21(7) of the DRLIG, which is consequently repealed.

The motives to be included in that list were not explicit but a low effective taxation certainly played a relevant role.

The new paradigm is defined by cooperation and the willingness to exchange information, irrespective of the level of taxation.
Those countries that have entered into a tax information exchange agreement or a tax treaty with an exchange of information clause will in principle be deemed “cooperative.”

However, the decree suggests that an effective exchange of information test may additionally be applied.

The decree will become operational once the new list is available at the AFIP´s website.