Services Prior Sworn Statement System

The Federal Tax Authority created the Services Prior Sworn Statement System effective as of April 1, 2012.

The Federal Tax Authority's ("AFIP") Regulation 3276 ("Regulation 3276"), published on February 22, 2012, provides that Argentine residents who contract services from foreign residents must file a DJAS. This Regulation also provides that Argentine residents who render services to foreign residents must file a DJAS, but such obligation has not been regulated yet. An Argentine resident for the purpose of the DJAS system is a person who qualifies as Argentine resident under the Argentine Income Tax regulations.

The information included in the DJAS will be available to the agencies which adhere to the system. The agencies will have to opine on the DJAS within the term to be established in the adherence document. Regulation 3276 does not provide that the prior approval of the DJAS by the agencies is a requirement for contracting the services or paying them. However, the information in the DJAS will be included in the Foreign Exchange Transaction Control System, which has to be consulted by financial institutions prior to selling foreign currency to their clients. Therefore, it is likely that in the near future the Central Bank will amend its regulation to include the approval of the DJAS by the relevant agencies as a requirement for paying services abroad.

In those cases where the Argentine resident receives a service from a foreign resident, a DJAS must be filed if the amount of the service to be provided:

is for an amount of US$ 100,000 or more per year; or the installments are for the amount of US$ 10,000 or more per month; or the amount is not precise. There is no definition of service agreement, but the Regulation lists a broad range of services as being covered by the DJAS system. Those...