ARGENTINA Law and Practice Contributed by: Juan McEwan and Agustín Lacoste, McEWAN
2. Succession 2.1 Cultural Considerations in Succession Planning As family wealth and investments become increas - ingly global, foreign structures such as revocable and irrevocable trusts become more relevant and use - ful (unless members of the next generation reside in countries where these figures are not recognised or in which anti-deferral rules might render them incon - venient). Although the older generation is generally reluctant to turn over wealth and control, the overall tax burden to which they are exposed (PIT, PAT and the recent experience of the Solidarity and Extraordi - nary Contribution ( Aporte Solidario y Extraordinario , or ASE)) will no doubt encourage them to consider succession planning to ease this burden. Regardless of the fiscal efficiency associated with these structures, once assets have been contrib - uted to them, they will not be included in the judi - cial succession process that will be carried out upon the death of the decedent – thereby avoiding several costs involved in the court process. 2.2 International Planning See 2.1 Cultural Considerations in Succession Plan- ning . 2.3 Forced Heirship Laws Argentina has a forced heirship (public order) regime. The forced heirship portion refers to the part of the estate that is reserved for certain heirs by law (ie, forced heirs). This allows for descendants, ascendants and the surviving spouse to have a reserved portion ( la legítima ) in the deceased estate, of which they cannot be deprived either by will ( testamento ) or by any free inter vivos act (gifts) (Section 2444 of the CCCN). The reserved portions are as follows:
tendence of Insurance) take the necessary measures to identify holders of the accounts reached in the field of information exchange. According to the commitment assumed in previous years, AFIP regulated the automatic exchange of bank account information through General Resolution No 4056-6 on 22 May 2017. The resolution established the subjects, forms, periodicity and deadlines within which the information must be submitted. AFIP has demonstrated an active commitment in response to the information provided by jurisdictions with which bilateral agreements have been estab - lished. This commitment has resulted in a high level of initiation of tax audits related to taxpayers’ holdings abroad. On 5 December 2022, after several negotiations, Argentina signed an intergovernmental agreement (IGA) with the USA to facilitate implementation of the United States Foreign Account Tax Compliance Act (FATCA). Although the agreement allows the recipro - cal exchange of certain financial account information between the USA and Argentina (“Model 1”), there is still asymmetry considering the extent of the infor - mation that the USA will receive in comparison with Argentina (mainly as per the definition of an Argentine Reportable Account). The IGA establishes that the US obligation to obtain and exchange information takes effect once the USA formally notifies Argentina that it is satisfied with the country’s safeguards to ensure the confidentiality and appropriate use of the information exchanged for tax purposes, as well as the infrastructure necessary to support an effective exchange relationship. According to AFIP, in 2024 the US Internal Revenue Service (IRS) confirmed that Argentina meets the required cyberse - curity standards, and the automatic exchange of infor - mation has been operational since September 2024. However, to date, no significant audit or enforcement actions by the Argentine tax authority derived from this new exchange mechanism have been observed or made public.
• descendants – two-thirds; • ascendants – one half; and • the surviving spouse – one half.
These portions are calculated by considering the sum of the liquid value of the estate at the time of the dece -
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