The Government has established that the collection of Income Tax and VAT on electronic payments may be made from a monthly billing equivalent to 10,000 UVAS.
No withholding tax may be applied to electronic payments.
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Due to the promulgation of the fiscal package, is expected to improve the collection of taxes by businesses through electronic payment methods because the legislation exempts small businesses from tax withholdingsas indicated in article 102 of the rule promulgated this Monday. Among the withholdings that are practiced, there are those that are made on the Income Tax. Profits and VAT.
The Argentine Fintech Chamber expressed its support for the decision through a statement, in which it highlights that it is now awaiting the relevant resolutions of the Federal Public Revenue Administration (AFIP).
“This measure It favors the formalization of the economy by eliminating the tax withholdings that are currently applied to merchants and self-employed professionals for payments made with debit cards, credit cards and other digital payment methods, in operations by up to $10,528,000 per month”the entity indicated.
What the AFIP regulation establishes for electronic payments
The rule states that the entities that manage debit, credit, purchase and similar cards, as well as the groupers, aggregators, financial entities and other processors of electronic means of payment “They may only make tax withholdings when so ordered by the national tax authorities.as long as the amounts processed exceed the equivalent of ten thousand (10,000) Monthly Purchasing Value Units per taxpayer.”
According to the entity, “one of the main obstacles to the digitalization of payments “It is the intense tax burden on small and medium-sized business segments.”
“The sanction of this article will help combat this problem, which discourages hundreds of thousands of merchants from accepting digital payments “in order not to be affected by high perceptions, which, in some provinces, exceed the amount of the tax to be paid later” the chamber points out.
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Fintech entrepreneurs say that “The digitalization of payments also implies an improvement in the traceability of operations; greater access to credit “Since, by digitizing the transaction, information is generated that leads to better conditions when requesting loans and more transparency and security compared to cash, which exposes merchants and consumers to the risk of theft and other associated costs.”
“That is why we promote the prompt regulation of this initiative and we request the provincial governments and the City of Buenos Aires to issue complementary regulations, which exempt from the withholding of Gross Income to operations below the limit set by this law,” the entity said.
Those who are affected
According to the law, those who carry out at least one of the following tasks will be considered groupers, aggregators and/or processors of electronic payment methods:
- The adhesion of businesses or suppliers to the debit card system, credit card system, purchase card system or other electronic means paid;
- The provision of the service of accepting debit, credit, purchase or other electronic cards payment through platforms or systems that process payments or through point-of-sale terminals;
- The settlement to the recipient of payments of the amount of payments collected through cards debit, credit, purchase or other electronic means of payment.
Source: Ambito
