The Government is considering eliminating the Monotributo (simplified tax system) and lowering the floor for the Profit Tax, as part of reforms aimed at formalizing the economy. According to ClarÃn, the Government has told entrepreneurs that it is studying these changes. Regarding VAT, a minimum threshold equivalent to Category F of the Monotributo (3 million pesos per month) is set. Profit Tax: The creation of a single non-taxable minimum equivalent to an average salary of 1.7 million pesos in 2025 is being evaluated. New employment regime: For companies with dependent employees, a reduction in contributions and contributions for new labor relations is proposed. The new scheme could move all taxpayers to the general tax regime. The objective is to "formalize" the economy, according to meetings held by the economic team with the private sector. Main changes being evaluated by the Government: Monotributo payers: The regime would be eliminated, and taxpayers would become self-employed. Self-employed: A scale from 100,000 to 500,000 pesos is being considered, with the possibility of deducting personal expenses. This would also apply to workers who have been unemployed for 6 months and former Monotributo payers. According to the latest official data, Argentina has around 2,159,000 Monotributo payers.
