There is a long-standing debate around the world about the advisability of imposing a tax on the free transfer of assets. In our country, inheritance tax dates back to the colony year 1801 when a tax rate of 1% and 4% was introduced, which was ratified by the provincial courts in 1853. In 1923, under the presidency of Marcelo T. de Alvear, the inheritance tax was introduced, the proceeds of which went to public education.
The first tax break occurred in 1951 with the introduction of the free transfer of assets replacement tax, which taxed corporate assets at 1%. In 1974 it was reborn with the free wealth appreciation tax, which only applied in the federal capital until it was repealed in 1976 with the introduction of the net wealth tax.
There have been various reimplantation initiatives, for example in 1985 under the presidency of Alfonsinin 2006 at the initiative of ARI and in 2007, by Front for victoryall without success.
In short, today this tax does not exist at the federal level, but since 2011 in Buenos Aires, the only province that levies it.
We must point out that in order to have wealth, numerous taxes must first be paid, especially income tax, and once wealth is formed, numerous taxes try to appropriate it, such as personal property tax, real estate tax, motor vehicle and boat licenses, and municipal taxes.
Roads, etc. Finally, this tax is in addition to the free transfer of such assets.
With this tax there are two situations that generate the payment:
1) Beneficiaries who have their actual residence in the province are responsible for the payment of all assets received, be it by gift, bequest or inheritance (including the presumptions established by law), regardless of the location of those assets (from assets abroad to those in other provinces).
2. For non-resident beneficiaries, the tax applies only to the gratuitous transfer of assets located in that jurisdiction.
The rates for gifts or inheritances can reach the maximum of the scale ($4,355,750,000) depending on the relationship that exists with the beneficiary:
• Father, child and spouse: 7.008%
• Other ancestors or descendants: 8.191%
• Others, depending on relationship or without relationship: from 8.753% to 9.513%
In case you want to get a free transfer of assets outside the province, the alternative is to relocate to avoid the high tax burden.
Also in both cases and in view of possible inheritance planning in advance The free transfer of assets can be postponed until the tax is repealed.
The collection of this tax in the first seven months of the current year represented a contribution of approximately one per thousand of the total taxes. If the expenses and damage caused by this regressive tax to the province are deducted, the net revenue will certainly be negative.
Among other disadvantages, it must be taken into account that the settlement of persons with significant assets in the province, the acquisition of assets there and also the appropriate planning of inheritances and legacies are affected It is recommended that the tax be abolished at the provincial level and not introduced at the federal level..
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