Fiscal Fight Erupts Over Central Bank Rule on Account Registration

A recent decision by Argentina's Central Bank (BCRA) allowing banks to register remotely opened accounts in any operational branch nationwide has ignited a fiscal conflict between national, provincial, and municipal authorities.

The BCRA's regulatory modification aims to provide greater flexibility for banks amid increasing digitalization, with approximately two-thirds of new accounts now opened non-in-person. While banks must inform users of the branch where their account is registered, the change has significant tax implications. Banks may now choose to consolidate accounts in jurisdictions with lower fiscal pressure, potentially avoiding provinces or municipalities with higher rates on Gross Income (IIBB) or Security and Hygiene taxes.

This development is part of the national government's broader campaign against provincial and municipal taxes, which it argues inflate credit costs and financial expenses for individuals and businesses. The financial sector has long contended that the IIBB tax burden is passed on through interest rates, ultimately hindering access to financing. Tax specialists, however, caution that the BCRA's measure may not override existing inter-jurisdictional tax agreements like the "Convenio Multilateral," which governs the distribution of taxable income. They suggest that any reduction in the tax burden on financial activities should be addressed through a comprehensive fiscal pact rather than regulatory adjustments.