The Government came out to clarify the versions about possible changes in the Monotax regime, after the existence of a draft that points to its elimination emerged. In a press conference, Chief of Staff Manuel Adorni asked for caution and maintained that any modification will be officially communicated when the tax and labor reform is presented. “There is a lot of talk about certain issues, including the monotax”he confirmed, and clarified: “Until there is official communication, do not say things that are not.”
Adorni stressed that, for now, there are no concrete definitions and that speculation is unfounded. “Any statement about measures that have not been communicated through official channels is false or inaccurate”, he warned.
Despite the clarification from the Chief of Staff, it is worth reviewing that it was the government itself that reinstated the issue. In the last few hours, the Minister of Economy, Luis Caputo, shared his proposals to “formalize” employment. with the private sector. Some changes were reflected in a draft to which Clarín had access titled A reform to formalize the economy, boost the capital market and resolve pension sustainability.
In the midst of uncertainty, specialists consulted by Clarín analyzed the possible impact of a reform of these characteristics. Tax expert Sebastián Domínguez, CEO of SDC Asesores Tributarios, warned about the climate of concern among taxpayers: “It is not good that so much uncertainty is generated for monotributistas.” And he warned that a direct exit to the general regime would imply “a very heavy tax burden, in some cases impossible to face”.
For Domínguez, if the elimination advances it must be accompanied by a comprehensive reform: “If the Monotax is eliminated without changes in the general regime, the impact will be negative: more informality, less compliance and many people without medical or pension coverage.”
In this sense, the specialist asked that the Executive give clear signals about its intentions: “It would be convenient for the Government to clarify, at least in general terms, whether an elimination or a reform of the Monotributo is contemplated.”
Domínguez explained that the current regime, created in 1998 as a simplified scheme, ended up generating distortions and practices such as “fiscal dwarfism”, hidden labor relations and insufficient pension and health contributions.
For the specialist, Any modification must be accompanied by measures that make the transition viable: a more reasonable self-employed scheme, improvements in Profits, VAT options and a reduction in labor costs to formalize hidden relationships. And he concluded with a direct message: “Do everything together, abruptlycan be counterproductive. A staggered implementation would be more reasonable to avoid critical situations.”
Along the same lines, accountant Elisabeth Piacentini, CEO of Estudio Piacentini, agreed that an abrupt jump would be unfeasible. “It would mean having to record operations, account, request documentation, make settlements and not be certain of how much you are going to pay per month,” he explained. And he added that a monotributista, an entrepreneur or a professional is not prepared for that level of demand, “they need to dedicate themselves to working and not making monthly payments.” He also showed concern for those who depend on the social work of the simplified regime: “Not having more social work and moving to a paid system would be a problem”.
For Piacentini, furthermore, a reform should not focus on this universe: “It would not be beneficial for the monotributistas or for the Government, because it is not in this sector where the highest collection is.”
For his part, accountant Marcelo Rodríguez pointed out in several television interviews that dismantling a regime in force for almost three decades requires times and stages. He recalled that the regime integrates nearly three million people into the formal system through a simplified scheme and that its elimination would force many professionals and small merchants to suddenly enter VAT, Profits and self-employed. “There is a lot of concern expressed on the networks. The Monotributo is part of the idiosyncrasy of Argentines like mate, dulce de leche and Sunday roast, and it is a regime that has simplified the life of the small taxpayer.” So, “a reform of this size cannot be applied in an accelerated manner and it is impossible to resolve it between now and December 31”
A change of this nature, according to the accountant, could generate administrative disorder and complicate taxpayer obligations“, he stated. In that sense, the small taxpayer would go to the general regime and then pay VAT and Profits. Rodríguez, proposes a gradual transition, even with an intermediate regime, to avoid “saturating the tax administration” and even collapse the collection.
For experts, the key is that any reform must have an orderly and predictable implementation. “Doing everything together, abruptly, can be counterproductive. A staggered implementation would be the most reasonable,” they agreed.