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.
