The Argentine government has pushed back against growing speculation about a possible elimination of the Monotributo regime, a cornerstone of the tax system that covers about three million small taxpayers, and has called for waiting for the official reform project to avoid misinformation.
At a morning press conference, the Chief of Staff, Manuel Adorni, emphasized that any modification will be announced through formal channels as part of a broader tax and labor reform.
Sebastián Domínguez, CEO of SDC Tax Advisors, described the climate as one of "widespread unease" among taxpayers, as the jump to the general regime would imply not only a "heavy and impossible to bear" tax burden for many but also the loss of comprehensive health and retirement coverage.
Tax specialists warn that an abrupt implementation could unleash administrative and economic chaos, spurring informality and leaving millions of entrepreneurs, independent professionals, and small traders unprotected, who depend on the simplified scheme for their survival.
"The Monotributo, born in 1998 as a tool for inclusion, has prevented three million from falling outside the system; eliminating it without parallel reforms in Income Tax, VAT, and labor costs would generate more evasion and less revenue," argued Domínguez, proposing a staggered transition with an intermediate regime to avoid "critical situations".
In tune, accountant Elisabeth Piacentini, of Estudio Piacentini, highlighted the operational unfeasibility for users: "A monotributista is not prepared to record daily operations, file VAT monthly, or file Income Tax annually; they need to focus on generating income, not on bureaucracy".
"A direct elimination would be regressive for low incomes, pushing them into the informality that the regime has combated since 1998," she said.
According to the IMF, the simplified regime fosters practices such as "fiscal dwarfism"—where large companies fragment to pay less—and generates tax expenditures equivalent to 3.5% of GDP, while limiting VAT and Income Tax revenue.
The Minister of Economy, Luis Caputo, has driven these ideas in meetings with entrepreneurs, arguing that formalization would not only correct pension imbalances but also incentivize registered employment by reducing employer contributions by up to seven percentage points—from a current 25%, above the regional average—and creating a severance fund similar to that of the Construction Workers' Union.
In the economic context, with 13,062 registered jobs lost in August and a slight increase of 5,539 enrolled in Monotributo, the reform seeks to counteract labor precariousness through incentives for formal hiring.
The draft details specific adjustments: for the self-employed, monthly quotas would go from a range of 50,000 to 700,000 pesos to one of 100,000 to 500,000 pesos, with expanded deductions for personal expenses such as housing, education, health, and mobility, always backed by invoices.
"Until there is an official communication, things that are not should not be affirmed," stated Adorni, acknowledging that the topic has generated a whirlwind of rumors on social networks and in the media, but insisting that current versions lack concrete foundation.
The controversy flared up after the leak of an internal draft from the Ministry of Economy, titled "A Reform to Formalize the Economy, Boost the Capital Market, and Resolve Pension Sustainability," which proposes eliminating the Monotributo and moving its adherents to the general self-employed regime.
The document, initially shared with the private sector, aims to align the system with International Monetary Fund (IMF) recommendations, which since last April have pressured for its gradual elimination to remove tax distortions and broaden the tax base.
"It is not in this segment where the greatest evasion lies; such a reform would benefit the treasury little and social discontent a lot," he added.
Accountant Marcelo Rodríguez, a visible figure in television debates, compared the Monotributo to "iconic elements of Argentine identity, such as mate or asado," underlining its role in simplifying the lives of three million formal workers.
Buenos Aires, November 14, 2025-Total News Agency-TNA-.
