Tax reform: the "Super VAT" that comes in installments

A tax-simplification program the Executive has been announcing but which as of June 2026 is NOT a rule: it was not submitted to Congress as a bill nor is there a law, decree or file number for the 'comprehensive reform' as a single package. Announced/in-design components: (1) a 'Super VAT' or unified VAT, which would replace provincial Turnover Tax (~78% of the provinces' own revenue in 2025) with a scheme where the Nation retains 9% of VAT revenue and each province sets a provincial rate of up to 12% (total cap 21%, the current level), 'to generate tax competition between provinces' (figures per Chequeado, Nov 1, 2025); (2) a corporate income-tax cut (30%→27% and 35%→31.5%, from 2026) and a simplified regime for natural persons — but these components travel within the Labor Reform bill (tax chapter submitted to the Senate in Dec-2025), not in a standalone 'comprehensive' one; (3) elimination of internal taxes on a broad list of goods (also within the Labor Reform tax chapter, e.g. electronics); (4) elimination of the check tax 'when the fiscal surplus is consolidated'. Caputo explicitly ruled out a single-package reform: the Government advances 'in installments', first legal persons and then natural persons, 'as the numbers allow' (a statement gathered by El Cronista, not by the Chequeado primary source). The declared intention was to send the tax piece from 2026 on, but it did not materialize as a standalone rule. The most novel component (Super VAT) is the least advanced: it requires revenue-sharing reform and the agreement of each provincial legislature. unconf · Nov 1, 2025

Not in force: there is no rule in effect. It is an announced program in design. The declared intention was to submit the tax piece to the Chamber of Deputies in 2026 (Milei statements gathered by press, Jan-2026), but as of June 2026 it was neither submitted nor enacted as a standalone comprehensive reform. The dates and the mention of the 2026 IMF horizon come from press (El Cronista / La Nación), not from a primary source. The components that DID advance (corporate income-tax cut, internal taxes) came in through the Labor Reform bill, not this one. unconf · Nov 1, 2025

Once implemented, it would reach companies (corporate income-tax cut 30%→27% and 35%→31.5%; elimination of internal taxes and the check tax), natural persons (a simplified income-tax regime) and, centrally, the provinces: the Super VAT would replace Turnover Tax —the main source of provinces' own resources (~78% in 2025)— with a provincial rate of up to 12% within the unified VAT, which requires revenue-sharing reform and the agreement of each provincial legislature. Per an IDESA analysis cited by Chequeado, only ~8 jurisdictions (CABA, Buenos Aires, Chubut, Córdoba, Mendoza, Neuquén, Santa Cruz and Santa Fe) could self-finance under the new scheme and the ~16 remaining ones would face difficulties. As of June 2026 the impact is prospective: there is no rule creating obligations. unconf · Nov 1, 2025