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The General Resolution states that the Dirección Nacional de Migraciones (National Immigration office) can automatically exchange its knowledge of an individual’s presence in Argentina with the Administración Federal de Ingresos Públicos (AFIP, Argentina’s tax authority) as part of its consideration and analysis of a taxpayer’s request for a tax residence certificate (Certificado de Residencia Fiscal).
Under the agreement between the two government entities, AFIP can systematically consult the databases of the Dirección Nacional de Migraciones to corroborate the movement of individuals who request certificates of tax residence. Certificates of tax residence are used in the countries with which the Argentine Republic has entered into agreements to avoid international double taxation to prove an individual’s country of residence, which helps determine compliance obligations and which country has taxing rights.
For cases where AFIP can question a dual residence, the fact that they are able to access information regarding the number of days inside a given country can make it easier for them to exercise supervision and control.
The General Resolution spells out the way requests are made, the criteria for consideration of a taxpayer’s request, the timing involved, and the access to and exchange of information processes between the two government entities.
