June 5th, 2026
1. Government issues regulations for key labor reform provisions
The national government issued regulations for Labor Modernization Law No. 27,802 through four decrees published in the Official Gazette on June 1, 2026. Each regulation addresses a different set of matters. Decree 406/2026 addresses tax changes included in the Labor Modernization Law: it specifies income tax exemptions for rental income from residential properties and for gains from the sale of real estate, effective as of January 1, 2026. Decree 407/2026 focuses on the main labor changes, establishing a new mandatory pay stub that must reflect total labor costs and include a pie chart showing the breakdown of contributions. This decree also sets criteria for renegotiating expired collective bargaining agreements (using December 31, 2026, as the reference date in the absence of an explicit date) and provides that contributions exceeding 2% for workers or 0.5% for employers will not be approved. The decree also includes amendments regarding labor unions, establishing proportional representation between union leaders and contributing members, cross-checks with the SIPA, and a 5% threshold for disputes over union recognition; labor registration will now be conducted through the systems of the Customs Collection and Control Agency (ARCA), without the use of physical or digital ledgers. Decree 408/2026, whose effective date was extended to November 1, 2026, regulates the Labor Assistance Fund (FAL), intended to finance severance pay through employer contributions to mutual funds or trusts supervised by the CNV. Finally, Decree 409/2026 establishes the Registered Employment Promotion Regime (PER) to regularize unregistered or inadequately registered labor relations, with relief of social security and health insurance debts of up to 90% for micro and small enterprises and 100% for health and occupational risk-related contributions. In the face of opposition from some unions, the General Labor Confederation (CGT), which is participating in the 114th Annual Conference of the ILO in Geneva started on June 1, presented a report containing various warnings and criticisms of the Labor Assistance Fund (FAL).
Ámbito Financiero: Costos, aportes y contribuciones: los cambios en el recibo de sueldo con la reglamentación de la reforma laboral
2. Tax revenue exceeded inflation after nine months
Tax revenue in May 2026 reached $21.5 trillion, representing a year-over-year increase of 35.6%, according to the monthly report from the Agency for Tax Collection and Customs Control (ARCA). According to private estimates, the result represented a real increase of 1.7% and exceeded inflation for the first time in nine months, ending a streak of nine consecutive months of decline in real terms. From January through May, total revenue amounted to $89.6 trillion, up 26.4%. The main driver was income tax, which recorded a year-over-year increase of 67.9% and collected $8 trillion. During the month, the balance due on corporate tax returns for companies with a December fiscal year-end, corresponding to the 2025 tax period, became due. Other taxes also grew: Personal Property Tax recorded a 95.5% increase ($77.898 billion); Fuel Tax, 42.6% ($536.226 billion); Credit and Debit Taxes, by 28.5% ($1.4 trillion), and Social Security, by 27.3% ($4.6 trillion). Conversely, net Value-Added Tax collected $5.4 trillion, with a 22.6% increase, below the overall average. Revenues linked to foreign trade continued to be affected: export duties fell by 18.3% ($567.117 billion), due to lower rates for soybeans, wheat, and corn compared to May 2025, while import duties and other taxes rose by 5.2% ($489.413 billion). On the subject of taxation, over the past week, major Argentine business associations such as the Argentine Chamber of Commerce and Services (CAC) and the Argentine Confederation of Medium-Sized Enterprises (CAME) have spoken out against the International Monetary Fund’s recommendations for tax reform—a reform that the government has announced it will present before the end of the year. According to the chambers, the proposed changes shift the tax burden primarily onto workers and domestic consumption.
Perfil: La recaudación tributaria creció 35,6% en mayo impulsada por Ganancias
3. The Central Bank reached its annual international reserves purchase target
The Central Bank reached its annual dollar purchase target set for 2026, having accumulated more than $10 billion so far this year, following a purchase of $43 million on Wednesday of this week through transactions both on and off the foreign exchange market. The Bank recorded 100 consecutive days with a positive balance, with the highest daily purchase occurring on April 10, at USD 457 million. The balance for May closed at USD 2.596 billion, while, with Wednesday’s purchase, the balance for June has reached USD 273 million. In the first quarter of the year, the increase in net reserves was due to the BCRA’s issuance of unsterilized Argentine pesos, while the Treasury absorbed the surplus through local-currency debt placements, thereby stabilizing the dollar and inflation. Additionally, dollar inflows from agricultural exports were significant contributors to the rise in reserves, some of which have yet to be recorded and which could further strengthen reserves in the short term. Initial official projections put the net balance of purchases for 2026 between USD 10 billion and USD 17 billion, although the latter figure does not represent a target in and of itself. If the pace of reserve accumulation continues for the remainder of 2026, the figure could reach USD 24 billion, although this will depend on the availability of dollars and the demand for pesos in the local market, whose dynamics “will be decisive,” according to BCRA President Santiago Bausili. On Thursday this week, the International Monetary Fund (IMF), in a further show of support for the program agreed upon with Argentina, praised the country’s achievement of its reserve targets as a significant effort to strengthen external stability and economic resilience..
4. The government officially announced a reduction in export taxes on agricultural products and biofuels
The national government officially announced a reduction in export duties on grains, grain products, and biofuels through Decree 423/2026, published in the Official Gazette on June 3, 2026. The regulation, which establishes a schedule of gradual reductions extending through December 2028, took effect on June 4 and will be submitted to the Permanent Bicameral Commission of Congress. For winter crops, the reduction is immediate: the rate for wheat and barley drops by 2 p.p., from 7.5% to 5.5%, effective June 4. Processed products such as flour, semolina, starch, and malt will be taxed at rates ranging from 1% to 3.5%. For summer crops, the reductions are staggered between January 2027 and December 2028. Soybeans, currently at 24%, will be reduced by 0.25 p.p. per month starting in January 2027, to reach 21% in December 2027, and by 0.5 p.p. per month in 2028 to reach 15% in December of that year. Corn and sorghum, currently at 8.5%, will end 2027 at 7.5% and 2028 at 5.5%, with some exception on some tariff lines. Sunflower will see phased reductions, with certain varieties exempt. Soybean derivatives will also decrease gradually: the differential with soybeans will be reduced from the current 1.5% to 1% in December 2028, and oils will go from levels between 18% and 22% to values between 11% and 13.5% by the end of 2028. A 0% tax rate remains for biofuels, biodiesel produced from safflower, rapeseed, carinata, and camelina oils. The rest of the biodiesel will remain at 21% in 2026, decreasing by 0.25 p.p. per month starting in January 2027, reaching 18% by the end of 2027 and 13% in December 2028. With this measure, the government seeks to reduce the tax burden on agricultural production, encourage investment and exports, and satisfy sectors that have long been calling for a tax cut.
5. The Senate approved 74 judicial nominations, including Judge Michelli, and endorsed agreements over the 2001 default
On Thursday, the Senate approved a package of 73 judicial nominations for the appointment of judges and magistrates, including the controverted nomination of María Verónica Michelli, federal judge candidate in La Plata, which was approved by a vote of 44 in favor, 18 against, and 2 abstentions. The ruling bloc showed two dissenting positions on this nomination: Patricia Bullrich abstained and Francisco Paoltroni voted in favor, contrary to the bloc’s vote against. The dispute originated in the Government’s attempt to withdraw Michelli’s nomination to the Federal Oral Court No. 3 of La Plata, due to her family ties as the sister-in-law of journalist Hugo Alconada Mon, currently investigating the $Libra case. The decision created a division within La Libertad Avanza: Bullrich offered to resign from the bloc’s leadership and stated that she would exercise her “conscientious objection” to the withdrawal, although Milei rejected the resignation. After the session concluded, Justice Minister Juan Bautista Mahiques clarified that the president is not obligated to formalize the appointment, since the Executive Branch does not have to justify why it designates or withdraws a candidate. In the same session, the Senate endorsed, with 40 votes in favor and 22 against, the conciliation agreements between the Argentine State and the funds Bainbridge Fund Ltd. and Attestor Value Master Fund LP, linked to litigation stemming from the 2001 default. The text must now be addressed by the Chamber of Deputies before June 30. The Senate also unanimously approved with 61 votes the creation of a new chamber in the Federal Court of Appeals of Mar del Plata and the reorganization of the Federal Court of Tucumán into two permanent chambers, both initiatives referred to the Chamber of Deputies. By contrast, the Senate postponed consideration of the bill on the Private Property’s Inviolability, given the ruling bloc’s difficulties in securing votes for the chapter on rural land and the purchase of farmland by foreigners. The discussion is expected to resume next week.
El Cronista: Mahiques aclaró que Milei no está obligado a oficializar el nombramiento de Michelli como jueza