The Argentine Fintech Chamber issued a statement alerting about the decision of certain provinces and technical areas of the National Administration to increase distorting taxes such as Gross Income or Debits and Credits (IDC) on third-party fund flows. According to the Chamber, this measure represents a brake on development, especially in the context of the digitization of the economy.
According to the statement, the fiscal burden imposed on individuals and businesses that choose to pay or collect with electronic means is the main obstacle to the digitization of the economy. In particular, it is noted that Gross Income is considered a distorting and voracious tax, as it is applied on invoiced amounts regardless of the profit generated.
The Argentine Fintech Chamber criticized the high tax burden that is intended to be implemented, describing it as a "straitjacket for development." In relation to the IDC, it is mentioned that Decree 796/2021 restricts exemptions from this tax for operations related to virtual assets, creating inequality among various actors in the financial system and imposing pressure on the contributory capacity of numerous companies.
The situation is exacerbated by the possibility that companies may have to pay taxes even if they incur losses. In recent months, several provinces have opted to increase tax rates, reaching in some cases a confiscatory level of 16.5%. According to the Chamber, this trend not only affects companies but also limits growth and innovation at a crucial moment for the digital economy.
