As of 19 October 2026, major Argentine supermarket chains are lobbying provincial tax authorities to expand mandatory withholding regimes on Gross Income Tax (Ingresos Brutos) to transactions processed through virtual wallets such as Mercado Pago, Ualá, and Modo. The push targets three key jurisdictions — Buenos Aires, Córdoba, and Santa Fe — which together account for over 60% of national retail sales. Currently, withholding obligations apply primarily to credit and debit card payments; extending them to digital wallets would significantly broaden the tax base and improve collection efficiency for provincial treasuries. The initiative arises amid ongoing fiscal pressure on provinces to meet revenue targets under the federal fiscal consensus agreement.
Key Takeaways
- Expanded Withholding Scope: The proposed measure would require virtual wallet operators to act as withholding agents, deducting Gross Income Tax at the point of sale for purchases made at supermarkets and large retailers, mirroring existing rules for card payments.
- Provincial Coordination Challenges: Implementation depends on individual provincial tax codes and adherence to the Multilateral Agreement, creating potential compliance fragmentation for fintechs operating nationally.
- Fintech Compliance Burden: Virtual wallet providers face new technical and operational requirements to integrate withholding calculations, remittance schedules, and reporting across multiple provincial jurisdictions, increasing administrative costs.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement