Outgrowing monotributo: the income cap and how to switch regime

Monotributo is the simplest entry door to start a business: a single quota covering taxes and contributions. But it's designed for the smallest, so it has a billing limit. If your business grows, at some point you fall outside it. Here's how that cap works and what to do.

The income cap

Monotributo has a maximum of annual income (set in indexed units, 183,000 UI for unipersonales). As the UI is updated, the peso figure changes each year: for 2026, a unipersonal's cap is around $1,175,537 a year (and societies of fact, about $1,959,229). Always verify the current value:

The electronic-payments trick

Here's a key benefit that lets you bill more without exceeding the cap: what you collect by electronic means only partly counts toward it.

Per the DGI:

«Los ingresos que se originan en operaciones cobradas a través de medios electrónicos (tarjetas de crédito, de débito, instrumentos de dinero electrónico y análogos) cuentan con el beneficio de computar sólo un porcentaje del monto total»

In English: Income originating from operations collected through electronic means (credit and debit cards, electronic-money instruments and the like) has the benefit of counting only a percentage of the total amount

What happens if you exceed the cap?

If you go over the limit, you can no longer stay in monotributo: you have to move to another regime. The most common path is Pequeña Empresa (IVA mínimo), and if you grow more, the general regime (IVA + IRAE). The DGI publishes a comparison of the two regimes:

Monotributo vs Pequeña Empresa

The difference, simply: monotributo unifies everything (taxes + BPS) in a single fixed quota; Pequeña Empresa pays a monthly IVA mínimo and IRAE (which can be zero if there's no profit), plus BPS contributions separately. Higher up, the general regime requires keeping accounts. We cover this in our monotributo post and the which-regime post.

What to do

Track your annual billing during the year, not at the end of December. If you see you'll exceed the cap, anticipate the regime change and do it on time so you don't fall into irregularity. An accountant helps you pick the regime that fits you best.

At a glance

In short: monotributo has an annual cap (with an electronic-payments benefit); if you exceed it, you move to Pequeña Empresa or the general regime. Track your billing and verify the current cap with the DGI. When in doubt, ask your accountant.