In brief
The Federal Tax Authority (FTA) has established an Integrated System for Monitoring Foreign Payments of Services (SIMPES) through which the FTA will analyze compliance with tax obligations and the financial-economic capacity of the taxpayers who intend to make foreign payments for contracted services.
The SIMPES is established to complement the current control system integrated by the System of Financial Economic Capacity (“System CEF“) and the Integrated System for Monitoring Imports (SIMI).
On 7 January 2022, General Resolution No. 5,135/2022 was published in the Official Gazette, through it the FTA established the SIMPES. The main points are detailed below.
- Subjects obliged
The SIMPES will be applicable to: (i) Individuals; (ii) undivided estates; and (iii) the following legal entities: (a) Corporations, companies, trusts, condominiums, associations or entities of any kind, incorporated in the country; and (b) establishments organized in the form of stable companies domiciled or located in Argentina, belonging to a real person or a legal person from abroad. These subjects will be covered by SIMPES when they make payments abroad on their own or on behalf of third parties, or when they order payments to cancel their own or third-parties’ obligations as consideration for any of the services covered by SIMPES.
- Services covered
The SIMPES will be applicable when the payments abroad made by the obliged subjects are made in consideration of the following services: (i) maintenance and repairs; (ii) other transport services; (iii) postal and courier services; (iv) construction services; (v) insurance premiums; (vi) claims; (vii) auxiliary insurance services; (viii) financial services; (ix) telecommunication services; (x) information services; (xi) computer services; (xii) charges for the use of intellectual property; (xiii) investigation and development services; (xiv) legal, accounting and managerial services; (xv) advertising, market research and public opinion polling services; (xvi) architectural, engineering and other technical services; (xvii) operating leasing services; (xviii) trade-related services; (xix) other business services; (xx) audiovisual and related services; and (xxi) other personal, cultural and recreational services.
- Excluded concepts
The following concepts are expressly excluded from the SIMPES: (i) payments for services made through the use of cards; and (ii) payments linked to the provision of the following services regardless of the means of payment used: (a) freight services; (b) passenger transportation services; (c) travel services; (d) government services; (e) health services by travel assistance companies; and (f) other health services.
- Filing of affidavit: information to submit
The obliged subjects must provide, through the SIMPES, information related to the covered transactions, which will be considered as a sworn statement and will be sent to the Central Bank of the Argentine Republic (BCRA) for verification. The information to be provided refers to the following:
- Tax Identification Number (CUIT) of the subjects obligated to report
- Tax Identification Number (CUIT) of the payer
- Type and amount of foreign currency to be wired
- Intervening financial entities
- Information related to the foreign beneficiary of the payment
The affidavit will be valid during the calendar month in which it was made.
Once the SIMPES affidavit is submitted, the FTA will analyze the following:
- The situation of the subject based on the information available in its records. In the event that noncompliance or formal irregularities are detected, their correction will be requested in order to move forward with the SIMPES affidavit.
- The financial-economic capacity of the subject through the “Financial Economic Capacity System,” if the taxpayer does not pass such control, it may request the reprocessing or express its disagreement.
- Validity
The provisions of General Resolution No. 5,135 are effective from 7 January 2022, and will be applicable even to service contracts entered into prior to that date for which there are monetary considerations pending cancellation.
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