ARCA has notified taxpayers of reclassifications in their tax status due to discrepancies in declared income, leading to appeals processes amid controversy over the use of virtual wallets.
The Agency for Collection and Customs Control (ARCA) in Argentina has announced that it will reclassify certain monotributistas, or small taxpayers, after a systemic data cross-check revealed discrepancies in their reported income. This move has sparked a debate regarding the accuracy of taxpayer information and the agency's reliance on data obtained from virtual wallets. These reclassifications typically occur at the end of each period, with taxpayers expected to review their tax category based on their income, leading to potential changes if necessary. The time for reviewing and possibly updating tax categories for the earnings declared in 2025 was between mid-January and early February.
ARCA's recent notifications have highlighted the challenges faced by small taxpayers, many of whom depend on virtual transactions amidst a growing digital economy. The agency has stated that the reclassifications are based on incongruities found in the taxpayers' location within the classification table, indicating that some individuals may be categorized inaccurately according to their income and business dynamics. As a result, those notified will need to initiate appeals if they believe the agency's assessment is incorrect.
In response to these notifications, ARCA has provided guidance to affected taxpayers on how to appeal the reclassification decisions. This involves formal processes where taxpayers must present their cases, which may include additional documentation to support their claims. The agency's actions reflect a broader trend of increasing scrutiny over tax compliance as digital payment methods proliferate, affecting how income is reported and assessed in Argentina's evolving economic environment.
