Andrés Lerner 
Banks are still releasing information on clients who carry out transactions exceeding US$10,000 because, despite the official announcement, there has still been no regulation from the Financial Information Unit (UIF) modifying the procedures.
Nor has a bill been sent to Congress to change the foreign exchange law or create a fiscal pardon. The provinces foresee another complicated year for tax collection and are considering joining the new agreement proposed by the ARCA tax bureau.
Although President Javier Milei said that Argentines wishing to carry out transactions such as buying cars and land or depositing cash would be able to do so “without anyone asking them anything,” the measures that were officially announced differ from those that had been hinted at in the days prior. Consequently, more than a week later, banks are still releasing information about their clients.
Sources in the financial sector told the Herald’s sister title Ámbito that this is because the UIF has yet to modify any of its parameters. Banks still face reporting requirements and suspicious transaction reporting remains subject to the same parameters as before the announcement.
“What has changed are the amounts at which ARCA receives information and the requirement for a sworn statement that was routinely requested from clients when seeking credit, which many will continue to submit voluntarily to improve the amount, term, and rate,” explained a banking executive. The government claims that the regulations in question will be issued imminently.
Last Monday, within the framework of plans the government has dubbed the “Plan for the Historic Reparation of Argentine Savings,” ARCA announced a call to the provinces to sign a new information-sharing agreement, intended to guarantee the conditions of the new Simplified Income Tax Regime.
The text also included a threat to stop sharing taxpayer billing data with provinces that do not adhere. With that in mind, the Economy Ministry and ARCA met last week with the governors who are open to negotiations with the national administration.
The first provincial leader to sign up to the measures, which have been described by critics as a second tax amnesty, was Raúl Jalil of Catamarca, who was elected in 2023 on the Peronist ticket. Two Patagonian administrations with good dialogue with the Casa Rosada told Ámbito they would do likewise. Buenos Aires Province, on the other hand, will take time to analyze the proposal once all the cards are on the table: decrees, resolutions, regulations, and the law in Congress.
Beyond the potential political cost that not supporting Javier Milei could entail for government-friendly provincial leaders, the governors are concerned about tax revenue. A Federal Tax Commission report predicts a sharp drop in revenue from federal taxes this year. The forecast is that the second half of the year won’t see the significant rebound some analysts had expected.
This comes as the national government keeps public works on hold and provincial coffers are still running on fumes following last year’s decline. According to the report, which Ámbito has seen, automatic transfers show year-on-year declines of 2% to 6%, with La Pampa and Santa Fe hit the hardest.
That’s why some governors who have reservations about the government’s chosen path to implement the new regime are willing to yield: any extra money is welcome.
