The controversy over Facebook taxes is growing

Facebook's fight for taxes adds a new chapter in Argentina. In the midst of the doubts aroused by the conflict between the social network led by Mark Zuckerberg and advertisers who say they do not know they should continue to withhold 31.5% of payments as an advance payment or start turning 100 % of funds for

Facebook

the smaller agencies reported a case of discrimination.

"For us, the important thing is to know what to do and that the AFIP tells us how to proceed, regardless of what Facebook offers." Article 13 of the Law on Earnings is clear and explains that in general, you must keep the money before converting foreign currency into foreign currency. outside when it comes to advertising, but if the agency believes that it can be ignored in this case, we would have no problem doing so, "explained Interact, the entity that groups interactive agencies." It is also striking that it seems that the courts are threatened only by the smaller agencies. Maybe if they act with the bigger ones, it can turn into a scandal of another magnitude, "they added.

Behind this dispute, millions are at stake. According to their calculations in the industry, taking into account factors such as the number of active users (MAU) and the income per active user (ARPU) of Facebook in Argentina, the income that has been retained (or retained) by the agencies. The localities currently under discussion represent approximately US $ 50 million per year.

For Facebook, the question of whether to pay income tax in Argentina is a completely settled question. "Facebook pays all taxes required by law in the countries where it operates and we constantly dialogue with local authorities in this area." Last year, AFIP issued a binding resolution specifying the tax treatment applied to withholding services. Advertising on Facebook in Argentina and we realize it, "they explained on Facebook, Argentina.

The argument of the social network is that, although its customers are Argentinian, all the digital advertising services it provides are provided from abroad, more specifically from Ireland, through Facebook Ireland Limited. . The latter is organized under Irish law, is a subsidiary of Facebook Inc. (US) and has no permanent operational presence in Argentina, nor with servers or local employees. Based on this premise, AFIP found that, in the ark of the Income Tax Act, Facebook Ireland's operations in the country generated "foreign source" income and were therefore not not covered by the tax. local

However, the advertising agencies do not see the issue as clear and point out that they do not have a binding resolution from the AFIP. "The only thing we wish for is a clear communication so that tomorrow we do not have to face a lawsuit for non-compliance." This is not just a problem for advertising agencies, for AFIP, the advertiser is also favorable, the problem is even more complex, "they explain in the sector.