The Executive Reorganizes the Argentine Tax Authority

Through Decree 953/2024, published in the Official Gazette on October 25, 2024, the Executive Branch reorganized the Argentine Tax Authority (formerly called AFIP) into the Collection and Customs Control Agency (ARCA). The Decree quotes the powers conferred by article 99, paragraph 1 of the Argentine Constitution and article 3, paragraph b) of Law 27742 on Bases and Starting Points for the Freedom of the Argentine People.  ARCA will keep the status of autonomous entity within the scope of the Ministry of Economy.

The Decree also establishes that ARCA will have an Executive Director, who will serve a term of four years and will be supported by both a General Director in charge of the Tax Authority (Dirección General Impositiva, General Tax Directorate or DGI) and a General Director in control of the Customs Authority (Dirección General de Aduanas, DGA).
 

Subsequently, through Decree 954/2024, the Executive appointed Florencia Misrahi (General Administrator of former AFIP) as Executive Director. The same Decree appoints Andres Vazquez as Director General of the DGI and Jose Velis as Director General of the DGA. The Executive Director of ARCA is vested with the power to appoint and remove the General Directors and the heads of the units within the organizational structures.

The head of ARCA has 60 administrative working days from the date the Decree enters into force to submit to the Executive a proposal for regulations concerning the competencies, powers, rights, obligations, and the organizational structure of the entity. The Decree establishes that the powers and competencies regarding social security resources will be exercised by the DGI.

Among other relevant points, the Decree establishes that:
 

1.  Resources, personnel, assets, the current budget, rights and obligations of the former AFIP are now transferred to ARCA.
2.  ARCA will have the functions that were granted to the former AFIP by Laws 11683 (Tax Procedure Law), 22091 (Customs Operations Law), 22415 (Customs Code), Decree 507/93 (ratified by Law 24447 regarding Social Security Obligations), Decree 618/97 (Organization of AFIP), 1399/01 (resources of AFIP), and Decree 898/05 (organizational structure of AFIP), as amended.
3.  Other laws and regulations related to those mentioned above will remain in force, provided they do not conflict with the provisions of Decree 953/2024 or those applicable according to its provisions. Even in the absence of a strict conflict, their scope will be understood to be modified to the extent that they are virtually expanded, restricted, or not covered by the correlating provisions of this Decree.
4.  For tax, banking, and internal operational purposes related to the collection and distribution of funds in charge of ARCA, ARCA will have the same Tax ID AFIP had.

From the considerations of Decree 953/2024, it stems that the objective of the measure is to enhance the efficiency of aspects related to the implementation and control of the tax and social security regimes. To this end, the Decree states the new entity will promote a more rational use of human and material resources, by enabling specialization and training of personnel, as well as strengthening of Argentina's capacity to respond to social and regulatory demands.