The province of Buenos Aires, the witness case
It is the only district that currently collects inheritance tax. It is paid in the case of free transmissions that exceed the amount of $1.344.000, in the event that the transfer is from parents, children or spouses.
But if it is about other relationships, hereditary blood lines or simply an acquaintance, where the relationship is one of affective ties, it is charged from the $322.800.
The rates range from 1.6% for inheritances of less than $ 616,137, with a cap of up to 6.4% for inheritances of $ 78 million and up.
In the Province, the inheritance tax covers both natural and legal persons, who receive an asset located in the district or who have a registered address in that jurisdiction, regardless of whether the property is located elsewhere.
This is one of the points of conflict for the Government’s proposal of a future law to collect taxes on inheritances and donations, since the Buenos Aires model imposes the tax regardless of the physical location of the assets.
Who is exempt from payment
In the province of Buenos Aires, the Law 25,587 only exempts from the payment of inheritance tax those assets declared as “family assets”.
That is, as long as the inherited asset continues under that classification or figure, for 5 years or more, the person who inherits it is not taxed.
How the inheritance tax is calculated
According to the Buenos Aires regulations, in this case the properties are valued in three possible ways. The first is the tax value, which is between 35 0 40% of the market or market value.
Then, it can be considered from tax value reference, which is applied at the moment. By last, the market value, that is, the amount of sale of the property.
The latter is the one taken as a reference and provides the figure that will be divided according to the number of beneficiaries. It contemplates the highest tax value, which is always that of the market.
Other Failed Inheritance Tax Background
There was an attempt to copy the model of the province of Buenos Aires, which failed as it was repealed. Happened in Entre Ríos, during 2017. Given the claims of various sectors, a presentation was made to the Supreme Court, which determined their invalidity.
The presentation based the unconstitutionality on the “violation of the tax principle of equality, the constitutional principle of proportionality and the tax principle of non-confiscation.”
The highest court also warned, since its ruling, that this law was opposed to “the constitutional principles of territoriality and protection of the family.”
Source From: Ambito
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