A plain-language guide to the regimes a sole trader (unipersonal) can fall under: what they are, who they apply to, and how they are computed. Figures are the official values verified for 2026.
The simplest regime: instead of VAT and IRAE you pay a fixed monthly fee (minimum VAT).
Sole traders with annual income up to $195,922,900 (2026).
A fixed monthly minimum-VAT fee of $591 (reduced 75% or 50% in the first years: $147.80 or $295.50), plus BPS pension contributions. No VAT or IRAE is filed.
A single monthly contribution (law 19,942) that replaces taxes and BPS in one fee.
Very small-scale activities that meet the Monotributo requirements (BPS/DGI).
One monthly fee based on your health coverage (FONASA) and whether you have a dependent spouse. It replaces national taxes and contributions in a single payment.
You pay IRAE on a presumed (notional) income computed from your billing, not on real profit.
Personal services or sole traders above Literal E who do not keep full accounting.
48% of your billing is presumed to be income and taxed at 25% (≈12% effective), or the minimum payment of $6,840 per month if higher. BPS (Industry & Commerce) and FONASA contributions are added. VAT is 0% for exported services.
Income tax on property rental income, at a flat rate, with an exemption for small landlords.
Individuals who rent out property.
12% on rental income (Título 7, art. 37). You're exempt if your total annual rents don't exceed 40 BPC ($274,560 in 2026) and you waive bank secrecy with no other capital income above 3 BPC. There is a monthly advance payment (DGI dates, ordinal 22); its rate is set by a decree we haven't verified yet, so we only show the date.
IRAE on real profit (income minus expenses), with full accounting.
Mandatory above the Literal E cap, or by choice. Requires an accountant.
25% on the year's real net fiscal profit (Título 4, art. 23). We estimate the annual IRAE from the income and expenses you enter and show a verified monthly minimum; the final amount comes from your accountant's annual return.
Personal income tax, on a progressive scale.
People providing personal services who did not opt for IRAE.
A monthly progressive scale on labour income (BPS R 5/2026): a 7-BPC non-taxable minimum ($48,048/mo) and brackets of 0/10/15/24/25/27/31/36%. We show an estimated advance before your personal deductions, which would lower the final amount.