Argentina changes information reporting rules for trusts

Resolución General 3312/2012 issued by Administración Federal de Ingresos Públicos (AFIP), Argentina's tax administration, amends the information reporting regime for foreign and domestic financial and non-financial trusts. Compliance with the requirements is through annual electronic filing with the AFIP.

The general resolution also establishes rules for registering the operations of certain trustees.

"Under the previous regime, the information requirements applied only with respect to domestic trusts whereas the new regime also covers foreign trusts or similar structures that have an Argentine connection, that is the settlor, trustee or beneficiary is located in Argentina," said Nicolas Garfunkel, a manager in international corporate tax for KPMG.

The Resolution also sets up a regime for trust-related transactions, meaning that the creation of the trust, the incorporation of trustees and/or beneficiaries, amendments to the trust agreement and distributions are examples of transactions that must be reported within 10 days of being carried out.

If the trust has been set up in Argentina, the trustee will be responsible for reporting the transaction. In the case of foreign trusts the settlor and beneficiaries are responsible.

"In recent times the tax authorities have increased the general reporting requirements for all taxpayers in an effort to increase revenues," said Garfunkel. "I would not say that this is bad for the taxpayers, but of course foreign trusts are mainly used as a succession planning instrument and I don’t think that they will be happy to share all the details with the authorities."

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