Particle.news
Download on the App Store

Argentina Weighs Scrapping Monotributo in IMF-Linked Tax and Labor Overhaul Draft

Officials say no final decisions have been published despite a confidential outline shared with business leaders.

Overview

  • A confidential government draft presented to business groups proposes eliminating the simplified monotributo and migrating those taxpayers to the general/autónomo regime.
  • The draft details new autónomo contribution bands of roughly 100,000–500,000 pesos per month, a VAT entry threshold near current Category F levels, and a single personal income tax minimum around 1.7 million pesos in 2025.
  • It also sketches a new employment scheme that lowers employer and employee social charges, with larger reductions for hiring former monotributistas or people unemployed for six months.
  • Chief of Cabinet Manuel Adorni urged caution, stating there is no official content released yet and that specifics will be communicated when the Executive submits the reform package.
  • Tax specialists and business groups warn that an abrupt shift could raise administrative burdens and informality, even as IMF guidance has encouraged harmonizing small‑taxpayer rules and improving transitions, with millions of contributors potentially affected.