ARGENTINA Law and Practice Contributed by: Juan McEwan and Agustín Lacoste, McEWAN
conditions are met (control through ownership, lack of “substance”, passive income representing more than 50% of gross income, etc). Fiscal transparency also applies to individuals with interests in foreign trusts/private foundations, provid - ed certain conditions are met (revocable trusts, trusts in which the settlor is also a beneficiary, and trusts in which the settlor keeps direct or indirect control over the structure). These structures are therefore no longer useful for PIT deferral. Global Reporting For the past few years, Argentina has been an active participant in the exchange of international tax infor - mation. In this sense, Argentina has subscribed to: • tax treaties to avoid international double taxa - tion, which are bilateral and include information exchange clauses; • specific tax exchange agreements, which are also bilateral; and • the multilateral Convention on Mutual Administra - tive Assistance in Fiscal Matters proposed by the OECD. In order to fulfil the commitments assumed, the Fed - eral Administration of Public Revenues ( Administra- cion Federal de Ingresos Publico , or AFIP) enacted General Resolution No 3826/2015 on 30 December 2015, which established an information regime on financial accounts so that financial institutions pro - vide the required information. Through different com - munications, AFIP requested that the different enti - ties involved (such as the Argentine Central Bank, the National Securities Commission, and the Superin - 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. 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
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