ARCA outlines review process for monotributista category challenges

Argentina's tax agency ARCA clarified how it will handle the automatic recategorization of monotributistas who contested their assigned tax band. More than 220,000 small‑taxpayers received notices this year after ARCA’s activity controls. About 24,000 of them filed appeals, leaving their cases on hold pending a new review.

The agency said the recategorization relies only on commercial transactions charged via cards or QR codes, not on personal bank transfers, loans or intra‑account movements. It has opened a formal channel for taxpayers to express disagreement, and those who appealed will have the opportunity to demonstrate that certain detected movements do not constitute taxable income.

ARCA’s clarification comes amid controversy over whether some taxpayers were placed in higher categories based on personal financial activity. The review process is part of the routine bi‑annual recategorization required by Argentine tax law.