Argentina Dissolves AFIP, Creates ARCA for Tax Efficiency

The Argentine government announced the dissolution of the Federal Administration of Public Revenue (AFIP) and the creation of the Agency for Revenue and Customs Control (ARCA) to streamline tax collection and reduce bureaucratic inefficiencies.


Argentina Dissolves AFIP, Creates ARCA for Tax Efficiency

The Government has announced the dissolution of the Federal Administration of Public Revenues (AFIP) and the creation of the Revenue and Customs Control Agency (ARCA), with a simplified structure that will consist of the General Directorates of Taxes and Customs. The decision was communicated by presidential spokesperson Manuel Adorni, in a press conference with no questions from journalists. Adorni mentioned that the AFIP had been used as a political tool and that the creation of ARCA will mark the end of that fiscal voracity and will be focused on being a more efficient agency with less bureaucracy.

The creation of ARCA implies a reduction of 45% in senior authorities and 31% in lower levels, thereby eliminating 34% of the current structure and generating an estimated savings of 6.4 billion pesos per year. Additionally, 3,155 employees who entered irregularly during the previous government will be laid off. The Hierarchization Account for high positions will be eliminated, equating the salary of the head of ARCA with that of a minister.

The new Revenue and Customs Control Agency (ARCA) will replace the AFIP as part of a plan to reduce the State and eliminate inefficient structures. The main objective of ARCA will be to optimize tax and customs collection, reducing bureaucracy and increasing efficiency. Florencia Misrahi will lead the process as director of ARCA, alongside Andrés Vázquez in the DGI and José Andrés Velis in the DGA. The dissolution of the AFIP marks a pivotal change in Argentine fiscal policy.

The creation of ARCA aims for a more efficient and less costly entity than the AFIP, focusing on streamlining the structure and greater effectiveness in processes. The transition to ARCA will begin in the coming weeks and is expected to be operational before the end of the year. Andrés Gerardo Vázquez will assume the position of head of the DGI, while José Andrés Velis will do so in the DGA.