Changes in the Regulation of the Law of Tax on Gratuitous Transfer of Assets

On April 13, 2011, Resolution No. 18/2011 was published in the Official Gazette of the Province of Buenos Aires, through which various changes were introduced concerning the Regulation of the Law of Tax on Gratuitous Transfer of Assets (established by Provincial Laws No. 14,044 and No.14,200 and ruled by Resolution No. 91/2010; see “Tax applied to gratuitous transfers of goods" and “Amendment and Regulation of the Law of Tax on Gratuitous Transfer of Assets” published in Marval News # 88 and # 102, respectively).

The new Resolution sets compulsory requirements for public notaries and insurance companies, which will be regulated until the revenue collection regimes are implemented.

The main adjustments include the following:

• Public notaries who authorize taxed acts, agreements or operations:
  • Must leave a record, in the corresponding public deed, of the filing of the affidavit by the taxpayer;
  • must leave a record, in the corresponding public deed, of the prospective circumstance of unpaid tax;
  • must control that the data contained in the affidavit coincide with that entered in the deed;
  • must not authorize acts, agreements or disposals of goods when those goods have been obtained as a result of a taxable gratuitously increase in wealth, if not demonstrated, previously, the filing of the affidavit and, in the case, the tax payment, in relation to the gratuitous transfer under which the goods that are intended to provide were obtained.
• Insurance companies must:
  • Require that the taxpayer demonstrates the filing of the affidavit, when the warrants and payments for insurances that were done on their favor were taxed, whether those payments were made within the jurisdiction of the Province of Buenos Aires, or away from it to recipients registered in the Province;
  • control that the data contained in the affidavit coincide with that arising from the operations carried out.
• The formal duties by taxpayers, notaries and insurance companies are required even in cases where tax payment does not apply.
• In order to calculate the tax, the Tax Collection Agency provides, within its website (www.arba.com.ar), the necessary tools in order to simulate the amount that would correspond.