On 12 December 2020, the Federal Administration of Public Revenue (AFIP) Officially published General Resolution 4878/2020 of 12 December 2020, which provides new definitions and rules for beneficial ownership disclosures. According to the new Resolution, the initial reporting deadline of beneficial ownership declaration for 2019 and other disclosures are extended from between 14 and 16 December 2020 to 30 December 2020, depending on the last digit of the tax ID code. The beneficial ownership declaration covers information regarding foreign passive income companies for the years 2016. 2017, and 2018. The Resolution includes the following:
- The final beneficiary is considered to be the human person who owns the capital or the voting rights of a company, legal person or other contractual entity or legal structure – regardless of the number of titles, shares or equivalent securities they own, and their nominal value -, or that, by any other means, exercises control direct or indirect of said legal person, entity or structure.
- If the natural person defined as the final beneficiary above is not identified, the president, managing partner, administrator, or highest authority of the reporting entity must be reported as the final beneficiary, without prejudice to the powers of the tax administration to investigate the causes that led to the breach of the obligation to identify the final beneficiary as above.
- In the cases in which the reporting subject sells their capital on publicly listed stock exchanges or official stock markets, they must only inform as final beneficiary the human persons holding at least 2% of the shares or holding shares valued at ARS 50 million on 31 December of the reporting year need to be reported as final beneficiaries.
- Mutual funds are required to report final beneficiaries according to the preceding conditions, regardless of their shares being listed on a stock exchange.
