• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/12/2013

Argentina - Tax treatment of royalties at local government level 

September 12: Local governments in Argentina impose tax on business gross revenue, with the rates of tax depending on the type of activity and jurisdiction.

To address possible multiple taxation in several jurisdictions, there is a “multilateral agreement” (Convenio Multiliateral) providing rules for distributing amounts of collected tax revenue among the various jurisdictions.

To address whether royalties from technological advice or from the transfer of technology is a corporate activity for income tax purposes under the Convenio Multiliateral, an administrative court (Comisión Plenaria) concluded that royalties are not a corporate activity for purposes of local jurisdictions’ gross revenue tax.

Read a September 2013 report (Spanish) prepared by the KPMG member firm in Argentina: Novedad Especial (1° semana de septiembre)

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