OECD BEPS Agreement with Argentina: what changes for multinationals in 2026

Key data

If your company operates between Spain and Argentina, Germany, France, United Kingdom, Portugal or any of the over 60 countries that are signatories to the Multilateral BEPS Agreement, your bilateral tax treaties have just changed automatically. There is no need to renegotiate them one by one: the Multilateral Agreement modifies them in bulk.

Spain formally notified the OECD on 26 May 2026 of the completion of its internal procedures for the provisions of the agreement to take effect with respect to Argentina, according to the publication in the BOE of 12 June 2026. With this notification, Argentina joins the list of covered jurisdictions, which already exceeds 60 countries.

What does this regulation establish?

The Multilateral BEPS Agreement (Base Erosion and Profit Shifting) is an OECD instrument that automatically modifies bilateral tax treaties between signatory countries, without the need to renegotiate each agreement separately. Its objective is to close the loopholes that allow multinationals to artificially reduce their tax burden by shifting profits to low-tax jurisdictions.

The main measures it introduces in the affected treaties are:

• Anti-abuse clauses: prevent the benefits of a tax treaty from being applied when the structure or transaction has as its main purpose obtaining that tax advantage (principal purpose test or PPT).
• Limitation of benefits (LOB): restricts access to treaty benefits to entities that meet certain requirements for real economic substance.
• Dispute resolution mechanisms: improves mutual agreement procedures (MAP) between tax administrations to resolve double taxation conflicts.
• International tax arbitration: enabled with 19 signatory countries, including Germany, France, United Kingdom and Portugal. It allows disputes not resolved through bilateral channels to be submitted to an independent arbitrator, offering greater legal certainty to companies.

The mechanism is automatic: once both countries have completed their internal procedures and have notified each other through the OECD, the existing bilateral agreement is modified without the need for any additional procedures by companies.

Economic and operational impact

The impact is not a new tax or immediate direct cost. The real impact is one of tax risk and compliance cost: international tax planning structures that previously could benefit from a bilateral treaty are now exposed to much stricter scrutiny.

The concrete operational consequences are:

• Mandatory review of holding structures: intermediate companies in third countries used to channel dividends, interest or royalties between Spain and covered countries may lose treaty benefits if they do not have real economic substance.
• Greater documentary burden: companies will have to demonstrate that their structures have a genuine economic purpose beyond tax savings.
• New opportunities in double taxation disputes: arbitration with 19 countries (Germany, France, United Kingdom, Portugal, among others) allows resolution of conflicts that previously remained blocked in endless bilateral procedures.
• Risk of transfer pricing adjustments: transactions between related parties in covered countries will be subject to greater cross-border control between tax administrations.

Who does it affect?

• Multinational groups with subsidiaries or holdings in Argentina and the other over 60 signatory countries.
• Spanish companies with holding structures in third countries that channel income (dividends, interest, royalties) from or to covered countries.
• Foreign companies with a presence in Spain that use bilateral treaties to optimize their taxation.
• CFOs and tax directors responsible for the group's international tax planning.
• Tax advisors and law firms that manage international structures for clients with operations in covered countries.
• Companies with active double taxation disputes with Germany, France, United Kingdom or Portugal, which can now access international arbitration.

Practical example

A Spanish technology company has a subsidiary in Argentina to which it charges royalties for the use of its intellectual property. Until now, the bilateral Spain-Argentina treaty allowed a reduced withholding tax at source on those royalties.

With the entry into force of the BEPS Agreement with respect to Argentina, the Argentine Tax Authority (AFIP) and the Spanish Tax Authority can apply the principal purpose test: if they conclude that the structure exists mainly to benefit from the reduced treaty rate and not for real economic reasons, they can deny that benefit and apply the general withholding tax.

The company will have to document that the Argentine subsidiary has real substance: employees, assets, effective decision-making. Without that documentation, the risk of tax adjustment is high. On the other hand, if the company has a double taxation dispute with its subsidiary in Germany, France, United Kingdom or Portugal, it can now request the international arbitration procedure provided for in the agreement to resolve it in a binding manner.

What should companies do now?

1. Map the affected jurisdictions: identify in which countries of the group (of the over 60 signatories) you have subsidiaries, intermediate holdings or cross-border income flows.
2. Review existing holding structures: analyze whether intermediate companies have real economic substance or if their only function is to access the benefits of a tax treaty. Those that do not have it are at greatest risk.
3. Update transfer pricing documentation: ensure that the transfer pricing file reflects the new regulatory reality and justifies the substance of each group entity.
4. Evaluate active or potential double taxation disputes: if you have open conflicts with administrations in Germany, France, United Kingdom or Portugal, consult with your tax advisor whether the international arbitration enabled by the agreement can be a more effective route than the current bilateral procedure.
5. Review contracts and flows of royalties, dividends and interest with Argentina and other covered countries to ensure that withholding taxes applied are consistent with the new anti-abuse standards.
6. Consult with a tax advisor specializing in international taxation to assess the specific impact on your group's structure before the 2026 tax year-end.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-12709