The government launched the new income tax regime and seeks legislative support

The national Executive Branch has implemented the new Simplified Income Tax Regime.

Since Sunday morning, the application for enrollment has been enabled by the Federal Administration of Argentine Resources and Contributions (ARCA), and work is already underway on drafting a bill to "shield" the modifications at the legislative level.

A change with fiscal and political impact

The initiative is part of the package of tax reforms that the Government announced ten days ago and now seeks to formalize through a legal text. According to official sources, Casa Rosada expects to gain further support from governors in the coming hours to consolidate the new framework.

Catamarca and Tucumán were the first to sign their enrollment in the system, with bilateral commitments not to impose new provincial fiscal controls while requirements are relaxed at the national level. In both cases, these are provinces governed by Peronist leaders, Raúl Jalil and Osvaldo Jaldo, who maintain a fluid dialogue with the libertarian administration.

Key points of the new regime

The new framework—which will take effect starting with the 2025 fiscal period—introduces substantial changes for taxpayers who enroll, including:

• Elimination of the obligation to report assets at the beginning and end of the fiscal year.
• Elimination of the calculation of "amount consumed", which means a lower administrative burden.
• Simplification of automated asset cross-checking by the tax authority.

Tax specialists warn that these measures reduce bureaucracy, although they also weaken automatic fiscal control tools.

Bill and pressure on the provinces

The Government is preparing a brief bill to amend the criminal and tax procedure regime. Among its main points:

• Increase in the threshold for simple tax evasion, which is currently $1.5 million (2017 value), to a more realistic floor according to inflation.
• Reduction of the statute of limitations for tax cases from five to two years.

Meanwhile, the national government seeks for the provinces to join a fiscal information exchange agreement, committing not to establish parallel regimes. In exchange, ARCA would stop sending them sensitive tax data.

ARCA warned that "provinces that do not join will lose access to key information such as company billing or individual consumption exceeding $50 million."

Reactions in CABA and Buenos Aires Province

During the past week, the head of ARCA, Juan Pazo, held meetings with officials from Buenos Aires City and Province. In the City, Finance Minister Gustavo Arengo expressed a positive attitude but requested a technical committee to review the details. "We want to analyze the specifics of the agreement before making a final decision," he stated.

In contrast, the Province showed more caution. Although there is already a data exchange agreement with ARCA, they clarified that any modification would require a specific addendum. "We need greater regulatory clarity," they indicated from La Plata.

The Government considers it essential for these two key jurisdictions to support the reform, given their institutional and economic significance.