• Service: Tax
  • Type: Business and industry issue, Video
  • Date: 10/15/2012
  • Length: 3:54 Minutes

Highlights of current tax issues and trends in Argentina 

Rodolfo Canese Méndez, Partner, International Corporate Tax, KPMG in Argentina:

Good morning. I am Rodolfo Canese. I am a tax partner in KPMG Buenos Aires. I am in charge of international tax.

What is the economic situation in Argentina?

The economy in Argentina is growing, not at the same rate it was growing in the previous year. It’s reducing the rate of growth. So the challenge that the government has nowadays is to move or implement politics to incentive the local consumer and how to continue growing as in the past.

What is the future outlook for Argentina?

The future outlook is quite complicated because nowadays we have turbulent times worldwide, the crisis in Europe is affecting our exports so we have to consider such crisis and look at the ways in which we can replace our markets to the new markets, the destiny of our exports.

How does this affect tax policy?

The tax policy is affected because such changes in the world has implicit changes in the local economy. So nowadays the government is in a tendency of more controls over the operations and all over the regulations. Such controls become not only on foreign transactions but only in the local transactions. So nowadays there are more exchange information regimens, and more control over foreign transactions.

What are the issues and challenges today?

There are new issues since the global crisis affecting the export of our products and the challenge the government has is how to encourage foreigners to purchase Argentine productions. Nowadays China and India are the countries where the growth of the PBI or the people become more rich and they are consuming more. So we have to export our production and basically the commodities in the agricultural area, we have to export to those countries and increase our exports to those countries.

The issues that foreign companies have is that the policy of our government is not to allow them to import more than local production. The government is trying to implement a political incentive the exportations from Argentina. So the foreign companies the idea is to invest in Argentina in order to produce or add value in Argentina. And for the local entities the incentives in the exports are how we can move to the export not of a commodity but more products with value added and the Argentine brand and in order to sell and export abroad.

What should companies do to deal with these challenges?

The companies should adapt to these turbulent times, worldwide turbulent times, and have to adapt. They should be flexible in order to adapt to the new products and new regulations, not only in Argentina but also worldwide.

Rodolfo Canese Mendez, Tax Partner (KPMG in Argentina) highlights the current tax situation in Argentina.

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Iberoamerica Tax Summit 2012

Tax views
Videos and articles on views captured at the Iberoamerica Tax Summit 2012.