Amendments to the Law on Personal Assets Tax, Inclusion of Non-Financial Trusts - Argentina

The Law includes provisions related to the tax applicable to shares and shareholdings in the capital of companies regulated by the Argentine Companies Law (as per Law 19,550), whose holders are physical individuals and/or undivided inheritances domiciled in Argentina or abroad, and/or companies and/or any other type of legal entities, domiciled abroad, whose PAT must be liquidated and paid by the companies regulated by the Companies Law. The rate to be applied will be fifty hundredth per cent (0.50%) over the value determined according to the established by the PAT. The PAT paid like will be considered of unique and definitive payment.
In addition, in the case of non-financial trusts, the Law establishes that such non-financial trust shall be subject to the PAT, terminating a somewhat blurred situation. Such non-financial trusts shall be subject to the PAT, except when the grantor were the national, provincial or municipal government or the City of Buenos Aires, or such projects of development of infrastructures works that constitute priority object and of national interest, the tax will be liquidated and paid by the relevant trustee of the relevant trust. The applicable aliquot will be also fifty hundredth per cent (0.50%) over the value determined according to the established by the Law on Personal Assets.
If the national, provincial or municipal government or the City of Buenos Aires shares the capacity of trustees with others, the tax will be determined over the participation of such ones, except in trusts that develop the infrastructure works referred.
In these cases, is presumed, in the absence of proof to the contrary, that the assets part of the non financial trusts, are directly or indirectly owned by the individuals charged by the tax.
The Law came into force the eighth day after its publication in the Official Gazette.
ABOUT THE AUTHOR: Javier Canosa
Javier Canosa read law at the Universidad de Buenos Aires, in Buenos Aires, Argentina. He graduated in 1999. In 2000 he took a Masters course (LL.M.) at the Amsterdam Law School of the Universiteit van Amsterdam, where he had the opportunity to study the rules and regulations on US and EU competition laws, the laws of the World Trade Organization, EU international trade law, investment and monetary policies in international trade law and public and private law practice in international trade law.