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Argentina Drafts Tax–Labor Reform With Expanded Deductions and Possible Monotributo Elimination

Officials tout a formalization push through broader deductions with fiscal caution on timing.

Overview

  • The Economy Ministry is circulating a draft that would move current monotributistas into a revamped autónomos/general regime, broadening the tax base and tying relief to documented expenses.
  • A unification of the personal income tax floor around a projected ARS 1.7 million average salary for 2025 is under evaluation, which would increase the number of taxpayers subject to the levy.
  • Draft language contemplates renaming Ganancias as Personal Income Tax, expanding deductible categories for items from everyday purchases to housing, and setting a total deduction cap near ARS 5 million.
  • The labor chapter under discussion includes lower employer contributions, a mandatory cessation fund to replace traditional severance, and additional incentives for hiring registered workers and ex monotributistas.
  • Luis Caputo reiterates that broad immediate tax cuts are off the table to preserve the fiscal surplus, with consultations ongoing before any bill is sent to extraordinary sessions.