The Argentine government, led by Javier Milei, has introduced a regulatory decree as part of the Fiscal Innocence Law passed in December. This measure is designed to activate a Simplified Income Tax Regime for individuals, limiting the oversight of the AFIP (Argentine Federal Administration of Public Revenue) solely to income and deductions. Significant exclusions include the monitoring of asset variations, allowing citizens to freely withdraw dollars that had previously been kept in secret reserves, such as 'under the mattress'.

The policy aims to address historical challenges faced by Argentines, who have experienced decades of macroeconomic instability, including confiscations and fluctuating regulations that have deterred capital from entering the mainstream economy. The government's push for a 'permanent popular amnesty' signifies a major shift in the relationship between the state and taxpayers, encouraging individuals to bring their hidden dollars into formal circulation.

This regulatory change is positioned as a pivotal strategy to encourage investment and economic recovery. By reducing barriers and fears related to asset disclosure, Milei's administration hopes to instill confidence among Argentinians, potentially reversing the trend of hoarding dollars and stimulating economic activity. The implications of this measure could be far-reaching, impacting both the domestic economy and foreign investment dynamics.