Tax Succession Rules: GLT-39 and GLT-40 Explained

Tax Succession: GLT-39 and GLT-40

Heirs of Physical Persons (PF)

According to GLT-39, the heirs of a physical person (PF) assume tax obligations, subject to civil inheritance laws. Note the following provisions:

• 1. Legatees: Tax obligations are transmitted to legatees under the same conditions as heirs, including cases involving fractional legacies.
• 2. Sanctions: Tax sanctions are never transmitted to heirs.
• 3. Unknown Debts: Heirs are not responsible for obligations that were not reported prior to the death of the deceased. This measure prevents heirs from being surprised by new debts discovered after accepting the inheritance.
• 4. Unliquidated Debts: If a tax debt is not liquidated at the time of death, the obligation is still transmitted to the heirs.
• 5. Dormant Estates: The fulfillment of tax obligations for dormant estates (herencias yacentes) falls to the representative of the estate.

Heirs of Legal Entities (PJ) and Entities

The succession of tax obligations for legal entities and entities lacking legal personality is regulated by Article 40 of the LGT:

• 1. Dissolved and Liquidated Entities: If the law limits the liability of partners to the entity's assets, partners remain obligated up to the amount of their liquidation quota. If the law does not limit liability, tax obligations are transmitted entirely to the partners, who are jointly and severally liable.
• 2. Unliquidated Debts: As with physical persons, the extinction of a legal entity does not prevent the transmission of accrued tax debts; actions may be taken against any of the successors.
• 3. Dissolved but Unliquidated Entities: Tax obligations are transmitted to the successors or the persons/entities that benefit from the entity's operations.