Argentine President Javier Milei has fired Florencia Misrahi as director of the country’s tax agency, ARCA, following a backlash over a new tax regime aimed at digital content creators. The tax revisions, which classified streamers, influencers, and other artists into specialized tax categories, sparked widespread criticism.
The measure did not impose a new tax but instead sought to clarify tax classifications for digital workers. Previously, tax obligations for content creators were unclear due to the lack of a specific category for their job type. The new system attempted to solve this by introducing more specific classifications for influencers, bloggers, and other digital media professionals. However, this decision was unpopular and drew condemnation from both the public and government authorities.
The president’s administration issued an official order confirming Misrahi’s resignation, noting “differences in direction” under his leadership. There were also allegations that Misrahi was under pressure to lower her large pay, which had become a source of conflict within the Milei administration. ARCA, formerly known as AFIP, has undergone restructuring, and the new leadership will prioritize streamlining the tax system and cutting public spending over increasing tax burdens on digital enterprises.
Following Misrahi’s removal, Juan Pazo, who formerly worked in the Ministry of Economy, will take over as head of ARCA. The government has underlined its commitment to supporting digital entrepreneurs and working toward a simpler tax structure, emphasizing that the focus will be on cutting public sector expenses rather than imposing new levies.
