Businesses will not have to withhold these taxes on sales made with credit cards and other means of payment. The measure will be published this week in the Official Gazette.
The Government announced that this week it will launch another part of the Fiscal Package, which includes the elimination of income tax and VAT withholdings for retail businesses on sales made with cards and other means of payment.
“In the regulation of the Fiscal Package, the Ministry of Economy expanded the benefits to the private sector included in the norm and defined that there will no longer be any withholdings on account of Profits and VAT to businesses in the sales with debit cards, credit cards, purchase cards and similar, the groupers, the aggregators and the other processors of electronic means of payment”the Treasury Department reported.
The note indicates that Article 102 of the Fiscal Package defined that these exceptions had a limit equivalent to 10,000 Purchasing Value Units (UVAs).
“The measure represents a huge benefit to the formal private sector that invests and bets on the growth of the Argentine economy. The measure will allow for the promotion of the formalization of transactions, financial inclusion and the reduction of the costs of payment systems,” the statement said.
The economy also maintains that “it also allows advance the National Government’s objectives of promoting activity economic and promote the use of payment methods that provide greater transparency and formality to the economy.”
Invitation to the provinces
“The National Government also calls on the provinces to to adhere to this regime and eliminate the withholdings from Gross Income and other local taxes that have been established on the payments included in the measure,” the official note states.
The measure is expected to be published in the Official Gazette this week, and implies that the aforementioned retention regimes for payments made are no longer in effect. from 1 September 2024 inclusive.
Source: Ambito
