The Argentine Fintech Chamber expressed its “deep concern” about the elimination of tax relief measures for electronic collections, which were included in the draft Base Law (Omnibus Law).
Omnibus law: strong rejection by fintechs of the elimination of tax relief for electronic collections
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The Argentine Fintech Chamber made a public statement in which he expressed his “deep concern by the elimination of tax relief measures for electronic collections”, which were included in the draft Base Law (omnibus law). In this regard, he indicated that “this is the article that favors the formalization of the economy” since eliminated tax withholdings on digital payments to small taxpayers for up to 30,000 UVAs (about $16 million) per month.
For the Chamber, “this measure is crucial for the digitalization of the economy and, consequently, the reduction of the use of cash. Unfortunately, article 182 is part of the Chapter of Fiscal Measures, the elimination of which would be discussed within the Chamber of Deputies”.
The role of the tax burden
The same entity revealed that, currently, The tax burden faced by small and medium-sized businesses is one of the main obstacles to the digitalization of payments: “The elimination of this tax benefit only perpetuates this problem, which today discourages hundreds of thousands of merchants from accepting digital collection so as not to be affected by high tax perceptions, which in some provinces can exceed 10% of each sale.
In its public letter, the Chamber said that The digitalization of payments not only implies greater formalization of the economy, but also an improvement in tax collection and easier access to credit for small taxpayers.
Finally they made a public request: “We urge the authorities to reconsider this measure and to promote policies that encourage financial inclusion and the formalization of the economy, guaranteeing an environment conducive to the development of small taxpayers and the sustainable growth of the country.”
Source: Ambito
