Argentina amends its definition of beneficial owner

With the General Resolution (AFIP) No. 4912/2021 published on January 26, 2021 in the Official Gazette, Argentina modified the previous definition of final beneficiary relating to the reporting rules for trusts.

This new resolution considers the final beneficiary to be the settlors, trustees, beneficiaries, protectors and similar persons who act in trusts in Argentina and abroad, and any other human person who exercises direct or indirect control of the trust.

Moreover, when there is a chain of participations between the final beneficiary and the trust in Argentina, the first level of the chain must be reported; while for entities located abroad, or in the event that the settlors, trustee, beneficiaries or protector are legal entities, is mandatory to report the whole chain of holdings.

The owners or equity holders of listed companies (whether direct or indirect) with at least a 2% participation or the equivalent of ARS 50 million, will also have to be reported.

The deadlines to comply with the registration of data corresponding to the year 2019 have been extended accordingly:

  1. a)    information agents that have up to 50 final beneficiaries to report: 30 April 2021
  2. b)    information agents that have more than 50 and up to 500 final beneficiaries to report: 15 May 2021
  3. c)    information agents that have more than 500 final beneficiaries to report: 31 May 2021