Technical Wednesday.
Hi, I’m CPA Maximiliano Mira Salas.
In this week’s newsletter, we analyze the first notifications issued by AFIP–ARCA under the FATCA agreement between Argentina and the United States, and review the key points that taxpayers with accounts, investments, or financial structures in the U.S. should evaluate.
📝 Update: ARCA Has Started Disclosing Information Received from the U.S.
Argentina’s Federal Tax Authority (AFIP), through the ARCA system, has begun sending electronic notices to Argentine taxpayers whose accounts were reported by U.S. financial institutions under the FATCA (IGA Model 1) framework.
This marks the official beginning of the automatic exchange of financial information between both countries.
The reports transmitted by the IRS include data on:
- Accounts held in U.S. financial institutions where the account holder is an Argentine tax resident.
- Accounts belonging to entities or trusts in the U.S. controlled by Argentine beneficiaries.
- U.S.-source interest and dividend income exceeding USD 10 per year.
Note: Account balances and capital gains are not yet reported, although these may be incorporated in future phases of the agreement.
📋 What Is FATCA and How Does It Affect Argentine Residents?
The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law requiring foreign financial institutions (FFIs) to identify and report accounts belonging to U.S. taxpayers.
Under the intergovernmental agreement (IGA Model 1) signed with Argentina in 2022, a reciprocal exchange of information was established between the IRS and AFIP–ARCA, aimed at preventing tax evasion and strengthening financial transparency.
From now on, both tax administrations will receive data on financial accounts connected to residents of the other country.
💡 What This Means for Argentine Taxpayers
With the start of automatic reporting, ARCA has begun notifying taxpayers who hold accounts or investments in the U.S. that have been reported by U.S. banks.
Authorities will cross-check this information against local tax filings (such as Wealth Tax and Income Tax returns). Maintaining consistent documentation and reporting will be essential to avoid discrepancies or audits.
However, there are key exceptions:
- U.S. entities such as LLCs, Partnerships, or Corporations are not reportable under FATCA, since they are not treated as disregarded entities for U.S. tax purposes.
- In contrast, personal accounts and entities controlled by Argentine residents are reported, even when the funds are held in U.S. banks.
📌 Legal and Accounting Disclaimer
This communication is for informational purposes only and does not constitute legal, accounting, or tax advice. Each situation should be individually evaluated by a licensed professional, considering tax residency, entity type, and applicable international treaties.
At FINANCERS, we help you stay compliant while optimizing your international structure.
We advise entrepreneurs, investors, and freelancers from Latin America with operations in the U.S., analyzing FATCA’s scope under the local IGA, reviewing and filing W-8BEN / W-9 forms, structuring entities efficiently to minimize tax risks, and coordinating compliance between U.S. and local regulations.
If you’re unsure how FATCA affects you — or want to confirm whether your structure is subject to reporting — contact us for a personalized technical review.
CPA Maximiliano Mira Salas
International Tax Advisor | FINANCERS 🇦🇷🇺🇸
