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Argentina Weighs Monotributo Overhaul as Officials Reject Elimination Talk

An IMF deadline for a December tax plan is propelling internal work on alternatives to the small‑taxpayer regime.

Overview

  • Government teams are analyzing moving small contributors to another system to "formalize" the economy, while the president and Casa Rosada deny any official plan to scrap the Monotributo.
  • Luis Caputo’s staff shared draft proposals with private-sector stakeholders, and officials such as ARCA chief Juan Pazo are reviewing options, though no bill or formal project has been released.
  • One option under discussion would mirror Spain’s TRADE framework for economically dependent freelancers, alongside a push to simplify the autónomo regime.
  • Scope estimates diverge: official registries count about 2.159 million enrollees, but broader calculations that include mixed-income workers put adherents near 4.7 million, with roughly 42% receiving additional incomes.
  • The 2026 Budget projects Monotributo revenue rising 36% even as it is flagged as a sizable tax expenditure, and analysts warn poorly designed changes could drive more small taxpayers into informality.