Milei government has first victory in Congress
On the same day, deputies approved two projects: the Basic Law and a fiscal package. On Monday there were debates that lasted throughout the night. This Tuesday, there were four different votes throughout the day.
The president stated on the social network He also returned to using some of the keywords he uses in his speeches: “The Argentine people need representatives willing to end the privileges of caste and the corporatist republic. The rule of the protectors of the status quo ended on December 10th (the day he himself took over the government)”, the post states.
Milei may have problems in the Senate, where the ruling party has only 7 of 72 seats.
The Basic Law contains around 230 articles, a third of those included in an ambitious reform that failed in February in Parliament, where the ruling party does not control either chamber.
These are measures such as declaration of administrative, financial, economic and energy emergency for one year. This allows Milei to have “delegated powers” to govern in these sectors – that is, he accumulates power.
He can also dissolve state-owned companies and privatize public companies (see list below).
Also includes a labor modernization, a change in the regime of tax, customs and exchange incentives for large investments and ends universal access to minimum retirement.
See below some of the changes that were approved in the Basic Law, which still depends on approval by the Argentine Senate.
Concentration of power
| How was | How it turned out |
| The government needs approval of its policies in Congress in all areas | In matters of energy, finance, economy, and administrative issues, the government will be able to implement measures without Congressional approval for a year. |
Trial period for new employees
| How was | How it turned out |
| Today, the trial period before an employee is hired full-time is 3 months. | Now, the rules will vary according to the size of the company – for large companies, it will be 6 months, for small and medium-sized companies, from 8 months to 12 months. |
Income tax
| How was | How it turned out |
| Today, only those who receive at least R$13,850 pay Income Tax. | With the law, the value becomes R$10,600. In this case there are also differences depending on who the person is – for example, a married person with two dependent children only pays tax if they have an income above R$13,630. |
Tax for ‘Meis”
| How was | How it turned out |
| The tax for those who are “monotax” (something like the Individual Microentrepreneur in Brazil) varies according to the activity, and not the revenue. In January 2024, the lowest value was around R$72. The highest, R$633. | With the new law, values will increase by 200% to 300%. |
Argentines with money outside the country
| Tax amnesty |
| A law was introduced that allows Argentines who have money in foreign countries to repatriate the amounts. For sums up to US$100 thousand (R$520 thousand), there is no tax. For amounts above this, there is a 5% tax rate. |
Facilities for hiring
| Simplification and amnesty for employers who hired informally |
| There is also a simplification of records for hiring new employees and a type of debt “amnesty” for employers who hired informally, without registration. Furthermore, it is now allowed for an independent worker to hire up to 5 others without this constituting an employment relationship. |
State-owned companies to be privatized
| Fully privatized | Partially privatized or granted |
| Argentine Energy | Argentine Water and Sanitation SA |
| Argentine Radio and Television | Official Post Office of the Argentine Republic SA |
| Aerolíneas Argentinas | Belgrano Cargas e Logística SA |
| SE Railway Operating Society | |
| Corridors Viales SA |
- Today, the trial period before an employee is hired full-time is 3 months. Now, the rules will vary according to the size of the company – for large companies, it will be 6 months, for small and medium-sized companies, from 8 months to 12 months.
- Income Tax has also changed. Today, only those who receive at least R$13,850 pay Income Tax. With the law, the value becomes R$10,600. In this case there are also differences depending on who the person is – for example, a married person with two dependent children only pays tax if they have an income above R$13,630.
- The tax for those who are “monotax” (something like the Individual Microentrepreneur in Brazil) increased by up to 300%.
- A law was introduced that allows Argentines who have money in foreign countries to repatriate the amounts. For sums up to US$100 thousand (R$520 thousand), there is no tax. For amounts above this, there is a 5% tax rate.
- There is also a simplification of records for hiring new employees and a type of debt “amnesty” for employers who hired informally, without registration. Furthermore, it is now allowed for an independent worker to hire up to 5 others without this constituting an employment relationship.
Tags: Privatization stateowned companies labor flexibility expansion pays Income Tax understand Mileis economic reform Argentina World
