25% more tax perception is added

Currently, the tourist dollar, taking, for example, the Banco Nación exchange rate of $150, is added the PAIS Tax of 30%, plus 45% of the perception on account of profits and personal property and starting tomorrow it will be added 25% on account of personal assets (25%) which raises the value of the operation per dollar to $300.

The new provision that makes the value of the card dollar more expensive does not affect:

• Card consumption of up to US$300 per month will continue to pay the additional 30% of the PAIS Tax, the collection on account of profits and personal property (45%) with a dollar of $150 (Banco Nación) the value of the operation per dollar is $262.
• Purchases with a card, ticket or operation arranged prior to the entry into force of the new measures remain the same.
• The benefit of non-application of PAIS tax and perception for land tickets to neighboring countries is still in force.
• To app and streaming payments
• The savings dollar is maintained.

The additional 25% personal property retention that raises the value of the dollar affects the following transactions:

• Sumptuous or “luxury” goods such as, for example, high-end cars and motorcycles, private jets – small planes; recreational boats – boats; premium alcoholic beverages; watches, pearls, diamonds and other precious stones, slot machines and cryptocurrency mining machines.
• That is, the goods purchased abroad that demand through the Central Bank the transfer of foreign currency to 365 days.
• The purchase of any good necessary for production is not affected.

international artists

Meanwhile, a differential dollar rate was also established for services contracted abroad for recreation and artistic activities (recitals, sports activities, among other entertainment expenses). In this case, the country tax of 30% is applied, and taking an exchange rate of $150 (Banco Nación) to which 30% must be added, the value of the dollar will be $195.

AFIP authorities clarified that hiring from abroad “receives the income tax withholding from the local entity that pays for the hiring”.

These measures affect thenew purchases and purchases and contracts made as of Wednesday, October 12”, authorities clarified.

Another of the arguments put forward to explain the new value was that the tourist dollar “It does not affect 93% of people with consumption in dollars with cards” (considering the last month of August as an average). As explained “there is a high level of concentration of consumption with cards in dollars”. August consumption of 2.8 million people -equivalent to 93% of all consumers with cards in dollars- totaled US$60 million, 19% of total consumption. Meanwhile, only a few 200 thousand people -7% of the total- spent US$263 million, 81% of the total spending in dollars with cards.

In principle, it is estimated that the measure may discourage some consumption, but this 7% of users will continue spending by paying the new value, paying with physical dollars or with accounts they may have abroad.