The Buenos Aires administration has decided that, starting November 1, 700,000 taxpayers registered for Gross Income will begin to face withholdings every time they receive money in their virtual wallets. Axel Kicillof's decision, implemented through ARBA, replicates the scheme already in place for bank accounts and is part of the province's adherence to the Information System for Collection and Control of Credits in Payment Accounts (SIRCUPA), which has also been joined by 19 other districts.
The new tax scheme will apply to individuals and legal entities who file monthly or pay taxes under the Multilateral Agreement. In contrast, 1.3 million self-employed taxpayers enrolled in the Simplified Gross Income Regime will be exempt. In total, there are 2 million taxpayers in the province, so the impact falls directly on just over a third of them.
The system is simple in its logic and devastating in its effects: anyone who currently faces withholdings for Gross Income through their CBU in bank accounts via SIRCREB will also be affected when receiving transfers in virtual accounts (CVU) under SIRCUPA. In practice, this means that starting in November, a merchant or self-employed worker who collects payments from clients using Mercado Pago, Personal Pay, Prex, Lemon, Claro Pay or other apps will face the same withholdings already applied when using a bank.
The measure is causing alarm among tax specialists, who agree that many businesses will return to the "cash only" model or will apply surcharges to consumers for digital payments. Confusion is heightened because the system doesn't accurately distinguish between commercial collections and personal transfers, which opens the door for family members or friends who send money to a registered taxpayer to also see the tax deducted.
