Argentina has published General Resolution 4697/2020 of 14 April 2020 in the Official Gazette, which establishes new beneficial ownership disclosure requirements and other disclosure requirements. The Resolution entered into force on 15 April.
The Resolution provides that information on beneficial ownership must be reported to the Argentine tax administration (AFIP) on an annual basis between 28 and 30 July, depending on the last digit of the tax ID code. The information is reported electronically via the AFIP website (http://www.afip.gob.ar). The reporting requirement applies for resident companies, civil associations, foundations, and mutual funds, with beneficial ownership information to be reported with respect to ownership by resident and non-resident individuals, non-resident legal entities, and other ownership structures.
It is also required that resident individuals report any participation in the capital of resident and non-resident legal entities or structures. The performance of executive positions must also be reported.
Lastly, resident companies and individuals must report information on foreign companies in which they hold a participation of more than 50%, where the passive income of the foreign company is greater than 50% of the gross income for the year. The ownership condition may be met individually or together with related parties. Further, the reporting requirement applies regardless of the participation percentage if there is significant control such that there is a right to dispose of the company's assets, the right to appoint or remove a majority of directors, etc.
While the annual deadline for reporting the above information is 28 to 30 July, the Resolution includes an initial deadline for reporting of between 28 and 30 October 2020, depending on the last digit of the tax ID code. Information to be reported by this deadline includes the information for 2019 and, with respect to foreign passive income companies, information for 2016, 2017, and 2018.
Other Disclosure Requirements
In addition to the beneficial ownership reporting requirements, residents that sell or acquire shares, quotas, and other rights in resident or non-resident companies must report the sale or acquisition within 10 working days from the date of the transaction. Public notaries involved in such transactions also have a reporting obligation. Companies resident in Argentina are also required to report any changes in top executives and board members within 10 working days of the change. This information is also reported via the AFIP website.
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