Argentina and China launched an agreement to exchange tax information involving physical persons, business associations, trust funds, foundations and any entity liable of fiscal responsibility.
The announcement was formally done in Buenos Aires and is in the framework of the OCDE tax transparency and information exchange accepted regulations.
Argentina has 59 companies with shareholders in China and 12.213 physical persons from China are involved in trade and commercial activities said Argentina’s Federal Administration of Revenue, AFIP the country’s federal tax revenue office.
The exchange of information is possible following on Beijing’s conclusion of domestic legal procedures to make effective the agreement which was signed at the end of 2010 by Argentina’s AFIP head Ricardo Echegaray and China’s Commissioner for the taxing administration, Xiano Jie.
“It’s a great step forward for both countries since China is an important trade partner of Argentina”, said Echegaray.
Last year Argentina exported 6.4 billions dollars to China while Chinese sales reached 8.3 billion.
“We started negotiations well over a year ago and now the agreement has become a powerful tool to ensure transparency in trade operations”, added Echegaray.
The agreement covers all current taxes both for Argentina and China, with exception of tariffs.
“This is an open agenda for both countries “, said Echegaray.
Under the terms of the tax transparency and information exchange program, fiscal authorities from both tax revenue offices can make inspections in both countries.
“We are certain the implementation of the agreement will further promote Chinese investments in Argentina” said Echegaray. In the last two years China has invested over 15 billion dollars in Argentina mostly in mining, energy, finance and railways.
The agreement covers funds and societies trading in the stock exchanges of Shanghai and Shenzhen and similar markets in Buenos Aires.
Source: MercoPress