Thought Leadership

Last year the government was talking about significant reform to the tax system, has this started?

Reforms at the national level started in January 2024, a month after the new government took office. So far, the reforms seem aimed at downsizing the administrative structure of the State and reducing bureaucratic processes at all levels of government. However, there hasn't been  a noticeable decrease in the tax burden yet, as the Argentine Ministry of Economy is waiting for the October 2025 legislative elections. If they win, they aim to secure a sufficient majority in the Chamber of Deputies and the Senate to push forward with a comprehensive tax reform proposal, as well as a significant labor reform.

One commentator last year said Argentina was experiencing a profound cultural shift, as it moved from populist and coercive regime to a liberal and proactive one. What kind of changes has this brought to the business environment?

First, it’s worth noting that since the election of the new government—a period of nearly two years—there have been mixed feelings among both the business community and the general population.

Until 2024, the prospect of moving toward a liberal government was seen as a relief, a need to return to basics. Excessive tax pressure, currency restrictions that companies faced when remitting profits to their parent companies, the impossibility of paying imports to foreign suppliers, and an adverse macroeconomic and microeconomic environment (primarily driven by fluctuations in the dollar exchange rate and high inflation) created so much unpredictability that it discouraged both local and foreign investment.

Today, the inflation rate published on the 14th of each month is no longer a surprise or an urgent data point to verify; it has become one more indicator of our economy. This measure hovers around 1.5 to 2% monthly and has remained stable throughout the year. Nonetheless, falling inflation and the lack of monetary issuance have led to a deep recession, which has become more apparent from April 2025 until now. Currently, all business sectors are watching to see if the current government can reverse this recession with economic measures after the legislative elections in October.

Have there been any significant regulatory developments in Argentina over the last 12 months?

Yes, as I mentioned earlier, regulatory changes have occurred across all levels since January 2024. Laws that created bureaucracy within the state have been repealed, procedures simplified, processes automated, and ministries consolidated within the executive branch—from 18 during President Alberto Fernández’s administration to 9 under the current government. Complete state structures have also been modified and streamlined, with efforts to automate processes to reduce case analysis times for citizens. It’s impossible to list all the regulatory changes in the last 12 months because they are numerous and occur at all levels, but they include currency regulations, access to foreign exchange, labor reforms, deregulation of social works (mandatory health insurance), the dissolution and reorganization of the local tax authority, elimination of various information regimes, and more.

How would you describe the health of the accounting industry in Argentina in terms of customer demand, fee pressure, and staff recruitment and retention?

Currently, we see strong demand within the accounting and auditing sectors. There has been a noticeable shift toward requiring specialists in these areas, to the detriment of professionals focused primarily on taxes—correlated with the earlier mentioned decrease in fiscal pressure.

It’s also worth noting that we observe a change in mindset among Argentine companies, which are now investing more in systems and aiming to automate as many processes as possible in the finance sector.

Regarding personnel retention and hiring, it’s no longer common to see employees staying with a company for many years; instead, there is intense turnover. In Argentina, retention seems largely driven by the possibility of increasing income, bonuses offered by companies, and                    flexible or hybrid working arrangements (home office versus in-office work), unlike other countries where professional development and the challenge itself might play a larger role.

Are there any services areas where demand has grown over the last 12 months?

Based on our experience, the increase in services requested from us has mainly been in auditing and bookkeeping, while inquiries regarding tax services have decreased.

Has there been any significant consolidation or merger activity in the accounting profession?

Not at the moment.

What are your expectations for the next 12 months - are there any potentially significant developments in the pipeline?

As I mentioned earlier, we are watching closely for any economic changes that might occur after the October legislative elections, and how those could impact the country’s commercial activity.