Tax reform aims to streamline digital systems and improve compliance across federal and provincial levels. Sustainability regulation and responsible business priorities guide key infrastructure upgrades. ESG BROADCAST shares key takeaways.
The Government of Argentina has formally launched a World Bank–supported initiative to overhaul its national tax administration, with an emphasis on enhancing digital infrastructure, fiscal equity, and taxpayer services. The project—entitled “Argentina: Modernisation of Tax Administration for Improved Compliance and Public Services”—was approved by the World Bank Board of Executive Directors in June 2024 and is set to be implemented over a five-year period. Backed by a USD 150 million financing package, the plan is designed to support the Federal Administration of Public Revenues (AFIP) in executing comprehensive institutional, regulatory, and operational reforms to its revenue systems.
The primary legislative basis stems from Argentina’s broader commitment to public sector digitalisation and transparency, which has gained momentum amid post-pandemic recovery and fiscal deficit pressures. The financing instrument is structured as an Investment Project Financing (IPF) loan, with the World Bank acting as the implementation and disbursement authority. The Ministry of Economy will coordinate inter-agency support and reporting functions, while AFIP will serve as the principal executing body.
The project’s technical framework is underpinned by three interlinked components: digital integration, taxpayer service modernisation, and institutional capacity enhancement. Specific focus areas include building a unified digital taxpayer account, expanding remote verification systems, and leveraging data analytics to identify tax risks. The project also includes the introduction of mobile apps for taxpayer engagement and the automation of compliance procedures for both VAT and income tax across sectors. These initiatives are aligned with AFIP’s Medium-Term Strategy and the Digital Country Strategy (2023–2027) issued by the Secretariat of Public Innovation.
Importantly, the programme is expected to advance environmental, social, and governance (ESG) benchmarks through enhanced equity in fiscal policies and improved public financial management. A preliminary Environmental and Social Management Framework (ESMF) has been developed to guide the integration of ESG safeguards throughout the project lifecycle. Although classified as low-risk, the project includes a grievance redress mechanism and capacity-building measures to mitigate any unintended consequences.
The World Bank’s financing will also support procurement system upgrades and staff training at both central and regional AFIP offices. Notably, the plan incorporates gender-responsive design and aims to reduce compliance burdens on micro, small, and medium enterprises (MSMEs), which make up a large portion of Argentina’s business ecosystem.
Effective from July 2025, the implementation timeline includes quarterly reporting milestones and annual performance reviews by the World Bank and Ministry of Economy. Monitoring indicators will track digital uptake, taxpayer satisfaction scores, and audit case resolution rates.
Strategic significance lies in the alignment of tax administration with national sustainable development and responsible governance goals. For ESG stakeholders, the project signals a shift toward data-driven policy enforcement, increased transparency, and system-wide ESG compliance capabilities—particularly relevant for investors, international lenders, and regulated industries operating in Argentina.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
