Inheritance Tax in Buenos Aires, Argentina

Inheritance Tax in Buenos Aires, Argentina

The tax on inheritances, donations, and legacies tax is in force since January 1, 2011, in the Province of Buenos Aires.

 

In addition, there is a reduction of the minimum not subject to tax from $ 3,000,000 to $ 200,000 for children or spouses. Moreover, the increase in rates now goes from 4% to 16% on the surplus. When there is no blood relationship or if it is a distant relative, the minimum is $50,000. Then, the rate reaches 22%. There may be tax confiscation under certain situations.








According to some experts on this subject, the personal property tax is a sign of a clear duplication of taxes. The inheritance tax does not consider the previous assets of the beneficiaries, and even less their age. However, this information is essential in order to measure the current and future taxable capacity. Unfortunately, unacceptable duplication of taxes will occur, since legal entities must also tax the income received with income tax.

Inheritance Tax in Buenos Aires

Inheritance Tax in Buenos Aires

One of the main purposes of this measure is to analyze transactions considered to be suspicious of evasion. Therefore, the tax is applied despite being transfers for sales. For example, such as those made to future forced heirs or their spouses. According to the tax authorities, the liquidation of a marital partnership where a benefit is produced in favor of one of the parties, there is an increase in wealth free of charge. Therefore, this tax applies to this situation. Likewise, movements of funds in the months prior to the death of the deceased are taxed as well.

Inheritance Tax in Buenos Aires, Argentina

In Buenos Aires, the tax applies to all the assets received – either in the country or abroad – when the beneficiary resides in the province. This occurs regardless of the fact that some other jurisdictions may impose a tax of similar characteristics. Only assets located in the Province of Buenos Aires are taxed when the liable party – beneficiary is domiciled in another jurisdiction.

On the other hand, notaries should claim payment of the tax prior to the transfer of ownership of a property. When the property is located in the province of Buenos Aires and it belongs to a regular corporation registered in another jurisdiction, it should not be taxed – due to lack of tax power – but the law does so anyway.

 

According to the legislation in force, an exemption may apply to the transfer of extinguished companies. However, their invoicing in the previous year should be below $ 30,000,000. In addition, corporate activity should be maintained by the heirs on their behalf for a period of 5 years.

 

Argentina inheritance Attorney Lawyer

Argentina inheritance Attorney Lawyer

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