Milei's government announced a simplified Income Tax regime

In line with its goal of debureaucratizing the Argentine tax system and boosting economic formalization, the Government of  Javier Milei announced this Thursday the implementation of a new simplified Income Tax regime, which will take effect starting June 1, 2025.

The measure was presented by the Minister of Economy, Luis "Toto" Caputo, and the head of the Revenue and Customs Control Agency (ARCA), Juan Pazo, in a press conference where the guidelines of the Historical Savings Repair Plan for Argentines were also presented, the comprehensive package of measures aimed at restoring citizens' trust in the Argentine financial system.

The new regime will focus exclusively on invoiced income and deductible expenses, and will leave behind the requirement to declare personal consumption and asset evolution, one of the greatest bureaucratic burdens for taxpayers. The measure affects more than 390,000 self-employed workers, who from next year will have a clearer, more predictable, and simpler system.

This change implies a quality leap in the relationship between the State and taxpayers. Additionally, this new fiscal structure will allow resources to be freed up for both the citizen and the treasury itself.

Until now, the self-employed had to submit a sworn statement practically identical to that of a large company, including exhaustive information on consumption, assets, asset evolution, and even personal expenses. This requirement not only consumed time and money but also caused a climate of permanent distrust between the State and the citizens.

With the new scheme, that unnecessary burden is eliminated, representing a key step toward a more modern and less invasive tax system for ordinary taxpayers.

The initiative is part of a deep transformation process of the Argentine fiscal apparatus, which seeks to leave behind the logic of economic interventionism and move toward a model based on trust, transparency, and efficiency.

This measure by Milei's Government not only improves voluntary compliance and facilitates formalization but also aims to generate a change of era by sending a clear message to the taxpayer: From now on, the State values and respects those who work, making their lives easier.