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[BUSINESS] · Argentina · 11 sources

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Argentina faces tax shifts and rising industrial bankruptcies

Argentina is facing significant economic shifts characterized by a decline in tax progressivity and rising industrial instability. A report by the Instituto Argentino de Análisis Fiscal (IARAF) reveals that between 2019 and 2026, the tax burden shifted away from high earners toward lower-income workers. While high-income individuals saw a tax relief of approximately 7.8 percentage points, low-income workers experienced a slight increase in their total tax burden, largely due to employer contributions acting as a flat rate.

To address liquidity issues, the Agencia de Recaudación y Control Aduanero (ARCA) has implemented a new payment plan. This regime allows micro, small, and medium-sized enterprises (MSMEs), small taxpayers, and non-profit entities to finance debts incurred up to June 30, 2026, in up to 18 installments. Additionally, the Ministry of Economy has expanded tax refunds by 50,000 million pesos to support exporters and strategic investment projects.

Despite these measures, the industrial sector is under severe pressure. Economic experts and business groups report a record number of bankruptcies, with 132 companies filing for imminent bankruptcy by June 2026. Industry leaders warn of a potential mass closure of thousands of registered industries due to high tax pressure, extended payment cycles, and a lack of consumer demand.

Entities

Agencia de Recaudación y Control Aduanero · Argentina · Dante Sica · Industriales Pymes Argentinos · Instituto Argentino de Análisis Fiscal · Ministry of Economy · Union Industrial Argentina

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