Latin America tax reforms raise fees for freelancers and small businesses

Argentina’s tax authority ARCA will recategorize the Monotributo system, increasing monthly contributions and annual income thresholds for millions of independent workers. Projected adjustments could raise the Category A fee to about AR$ 42,387 and Category B to AR$ 48,251, with higher categories seeing larger increases. The changes aim to keep the regime viable amid inflation.

In the Dominican Republic, a new law effective 1 July increases the withholding rate on payments to independent professionals from 10 % to 15 %. The higher rate applies to fees, commissions, rentals and other incomes, serving as an advance payment toward the personal income tax. The measure expands the range of taxable earnings for freelancers and other self‑employed individuals.