On January 13, 2017, the Official Gazette published General Resolution (AFIP) No. 3986 creating the “Foreign Investors’ Code” which allows foreigners to make financial investments in Argentina through local banks or financial intermediaries in those cases in which they are not obliged to possess any kind of Tax ID (either CUIT or CDI).
Pursuant to General Resolution (AFIP) No. 3986, the “Foreign Investors’ Code” (“FIC”) must be requested by Argentine financial institutions and by financial agents authorized by and registered with the Argentine Securities Commission. These include negotiation agents, liquidation and compensation agents, and collective investment products administration agents, prior to the opening of an account owned by a legal entity and/or any other foreign collective entity, seeking to invest in Argentina and with no Tax ID. Such financial agents will act as representatives of the foreign entity requesting the FIC.
Financial agents will request the FIC and file necessary documentation through the Tax Authority’s website (www.afip.gob.ar). In order to do so the user (an individual) designated by the representatives must have a Fiscal Code. In addition, through that service the individual appointed to be “Proxy Relations´ Administrator” will be indicated.
If the Tax Authority accepts the request, within the following 5 working days, a limited access FIC will be generated, the “Proxy Relations’ Administrator” will be designated and an electronic fiscal domicile will be automatically assigned.
Financial agents will be liable if the information entered and the documentation filed are not correct and will also be responsible for storing that documentation for a 10-year period. The Tax Authority may assess the documentation presented, and dismiss the FIC.
Lastly, the FIC cannot be used to identify those responsible for complying with fiscal and social security obligations, in which case a proper Tax ID (CUIT) must be requested.
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