June 06th, 2025
1. Tax collection grew less than inflation
In May 2025, tax collection administered by the Argentine Confederation Resources Administration (ARCA) reached $15.9 billion, representing a nominal increase of 18.6% over the same month of the previous year. However, this growth was well below the year-on-year inflation estimated at 47.3%, resulting in a real drop of 19.5%. This decrease in real terms had a negative impact on the provinces, since they receive 60% of the co-participable resources, thus reducing the funds available for their budgets. Among the factors that explain this drop is an extraordinary income recorded in May 2024, derived from the Income Tax, which was boosted by the devaluation of December 2023. In addition, the elimination of the PAIS Tax, the reduction of tariffs on exports and the repeal of exclusion certificates that affected VAT and Income Tax customs perceptions also contributed to the decrease in revenue. These fiscal and regulatory changes have had a direct effect on the State’s capacity to generate revenues in real terms.
Infobae: La recaudación tributaria creció menos que la inflación y golpeó a las provincias
2. Cristina Fernández de Kirchner announced her candidacy in the Province of Buenos Aires
Cristina Fernández de Kirchner announced her candidacy for provincial deputy for the third electoral section of the Province of Buenos Aires for the legislative elections of September 2025. Her decision seeks to strengthen Peronism in the face of the advance of the libertarian right wing led by Javier Milei and to preserve the control of the Buenos Aires territory, key in the national political map. Although she criticized the electoral splitting promoted by Axel Kicillof, she affirmed that her participation responds to a collective need to consolidate the Peronist project in an adverse context. At the same time, the Supreme Court of Justice rejected CFK’s recusal against Judge Ricardo Lorenzetti in the Vialidad case, and was in a position to decide whether to confirm her conviction for corruption. If the Court confirms the sentence before the closing of the lists, Cristina would be disqualified to run, but if it decides to review the case in depth, the process could be extended and allow her to run. This generates a strong impact in the political scenario of Buenos Aires and national politics.
3. The government continues with its plan to get dollars out of mattresses
Argentina’s Financial Information Unit (UIF) has relaxed controls on the use of cash dollars, seeking to encourage their entry into the formal economic circuit. This measure adjusts the reporting thresholds for real estate and motor vehicle transactions, raising the amounts above which transactions must be declared. It also simplifies the process of proving the lawful origin of funds, allowing the use of bank statements, deeds, or sworn statements for the Customer Profile in the sale of vehicles, without the need for accounting certifications. In addition, the requirements for monitoring cash deposits in financial institutions are modified and the thresholds for notary public reports are raised. All these changes aim to reduce obstacles without weakening anti-money laundering controls, in line with international risk-based standards. In addition, 13 provinces have already signed the agreement on the exchange of tax information with ARCA, including Río Negro, Misiones, San Luis, Chaco, San Juan, Neuquén, Salta, Jujuy, Corrientes, Catamarca, Chubut, and Entre Ríos.
4. Deputies gave preliminary approval to pension reform and disability emergency measures
The Argentine Chamber of Deputies gave preliminary approval to several key initiatives that will now move on to the Senate. A 7.2% increase in the minimum pension was approved, as well as an increase in the pension bonus to $110,000, and resources were allocated to non-transferred provincial funds, financed through a reform of VAT and income tax exemptions. In addition, there was a surprise approval of a two-year extension of the Pension Moratorium that had expired in March. Finally, the Chamber also gave preliminary approval to the bill that declares a national emergency on disability, seeks to restructure the list of benefits, and reforms the pension system for people with disabilities, incorporating a 50% reduction in employer contributions for those who employ people with disabilities. The government has already announced that it will veto the pension initiative if it becomes law.
5. ARCA implemented the simplified income tax regime
ARCA, through General Resolution 5704/2025, launched a simplified income tax regime for individuals and undivided estates residing in the country. This option, based on information from ARCA and taxpayers or third parties, exempts those who choose it from the obligation to report their assets. To join for the 2025 tax period, interested parties must access the “Registration System/Simplified Income Tax PH” service on the ARCA website from June 1, 2025, until the day before the first general deadline for filing tax returns. In May 2026, taxpayers will be able to review and accept the amount proposed by ARCA, or adjust it. The agency will focus on billing and deductible expenses, leaving aside personal consumption and changes in assets.