The Government agreed with the IMF to simplify the Argentine tax system.

Within the framework of the new technical agreement with the International Monetary Fund (IMF), the national government confirmed that it will present a comprehensive tax reform proposal after the legislative elections, aiming to simplify the tax system and eliminate taxes considered distortive, without increasing the tax burden.

Tax reform: key points of the commitment

The memorandum signed with the IMF establishes that Javier Milei's administration will advance in a structural reform of the Argentine tax scheme, with a presentation date in December 2025 and implementation beginning in 2026, subject to legislative approval.

The plan includes:

• The elimination of low-revenue taxes, such as the check tax and export duties.
• The harmonization of VAT rates to simplify its structure.
• The reduction of tax expenditure caused by exemptions or sectoral and regional benefits.
• A simplification of the income tax, with lower legal rates and a review of deductions.
• Improvements in the transition from the simplified tax regime to the general regime.

"The Argentine tax system remains excessively complex and distortive", noted the IMF staff, who estimated the existence of more than 155 taxes, although only six account for 80% of total revenue.

Simplification and efficiency without raising taxes

The government assured that the reform will be fiscally neutral, meaning it will not seek to collect more, but to improve efficiency and equity. It will also aim to reduce administrative burden and promote a more predictable scheme.

From the IMF, it was emphasized that Argentina needs "a substantial reform" to strengthen its fiscal anchor. In this regard, it is suggested:

• Gradually replacing distortive taxes with better-administered direct taxes.
• Advancing in better valuation of real estate and territorial assets, especially at the provincial level.
• Improving federal coordination of the system to gain efficiency and predictability.

Changes also in provinces and municipalities

Although the Executive has jurisdiction over national taxes, the IMF also encouraged reviewing provincial and municipal taxes, especially those that affect assets or hinder economic development.

Among the recommendations are:

• Gradually eliminating distortive provincial taxes.
• Reviewing the tax scheme on energy and mining resources, in coordination with the incentives of the RIGI regime.
• Strengthening asset registries for better territorial oversight.

Long-term path with legislative support

Milei's economic team confirmed that the design of the reform is already underway, and that the content will be shared with the IMF in December 2025. Its execution will require parliamentary consensus, so the government will seek to negotiate once Congress is renewed.

"The reform will allow for the gradual elimination of the most distortive taxes, reducing inefficiencies and promoting equity", government sources detailed in the official document.