Argentina's Economy Minister Luis Caputo presented the "Fiscal Innocence II" bill on Wednesday during a press conference in Buenos Aires.

The proposal aims to reintegrate foreign currency into the formal economy by offering legal security to taxpayers who hold savings outside the banking system. By removing penalties, the government hopes to increase liquidity and predictability within the national financial circuit.

Caputo said the objective is for savings to be formalized in the banking system without any penalties. He said hoarding cash is inefficient, stating, "Tener los dólares debajo del colchón es un muy mal negocio" — having dollars under the mattress is a very bad business [1].

The new legal framework is designed to provide greater legal certainty for contributors. Caputo said the project will eliminate restrictions for joining, change the auditing rules for the Agency of Public Revenue and Customs (ARCA), and incorporate new guarantees for taxpayers [3].

According to the proposal, the deadline for the new Fiscal Innocence II regime is Dec. 31, 2027 [5]. The administration intends to send the project to Congress on Thursday [2].

This initiative follows previous attempts to regularize assets, but it focuses more heavily on the psychological and legal barriers that prevent citizens from declaring offshore holdings. The government believes that by altering the rules of fiscal oversight, it can encourage a larger volume of capital to return to the domestic market.

“"Tener los dólares debajo del colchón es un muy mal negocio."”

This move signals the Argentine government's urgent need for hard currency to stabilize its economy. By extending the deadline to the end of 2027, the administration is attempting to create a long-term window of trust to lure back capital that has remained hidden due to years of economic volatility and fear of seizure.