The government, through the Ministry of Economy and the Ministry of Human Capital, will assess reform packages affecting the tax system.
November 14, 2025 – 11:38 a.m.
The central government, through the Ministry of Economy and the Ministry of Human Capital, is evaluating a series of reforms affecting the tax system and Argentina’s labor market.
The core of the proposal, drawn from internal documents and meetings with the private sector, calls for formalizing the economy, promoting capital markets and making pensions more sustainable.
One of the most resonant measures is the possible abolition of the simplification system (monotax).
The end of Monotribute: What is known so far
This initiative is in line with the recommendations of the International Monetary Fund (IMF) and aims to abolish the monotax. The plan envisages these taxpayers moving into the general self-employment regime in order to ‘whiten’ and simplify taxation in the sector.
At the same time, the self-employment regime itself will be subject to related amendments.
- Allocation adjustment: The range of contribution rates will be changed from the current size of $50,000 to $700,000 to a new size of $100,000 to $500,000 and will be analyzed.
- Expense deduction: It allows the possibility to deduct personal expenses on the receipt.
- Minimum VAT threshold: Regarding value-added tax, a minimum threshold amount corresponding to Monotax category F has been set, which today amounts to approximately $3 million per month.
Income tax: new minimum deduction and adjusted deductions
Regarding income taxes, the reforms now call for establishing a single tax-free minimum amount (NMI) equivalent to a projected average salary of $1.7 million in 2025, Eleper said.
This reform proposes:
- For single workers without children, paychecks start at nearly $2.84 million in gross pay (approximately $2.36 million net).
- The interest rate scale of 5% to 35% will be maintained.
- The maximum deduction will be adjusted to $5 million, which includes items such as food, housing, education, life and retirement insurance, health, and transportation, all of which will require receipts. Mandatory contributions (PAMI, Obra Social, ANSES) will continue without deduction restrictions.
It is estimated that this redesign could incorporate approximately 3 million people who would need to start submitting their bills to verify their deductions.
Incentives for regular employment: Reducing social burden
The reforms also include a new employment system focused on reducing processing costs and expanding the pool of contributors.
This reduction is aimed at promoting formal job creation and worker reintegration.
On top of that, Zero-cost money laundering practices for employers are analyzed; It is designed to facilitate the transition of informal workers to formal employment at no additional cost. The package of measures being developed by the Ministry of Human Capital may be submitted to an extraordinary session of parliament.
As of now, the plan has not been made public and no date has been set for it to be submitted to Congress. “However, the mere publication of its contents has raised alarm among accountants, chambers of commerce and experts, who are warning that the sudden abolition of monotributo could damage the real economy,” says Marcos Felice of the Contador Blog.
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