‘Card dollar’ exchange rate rises to almost AR$950 after tax hike

The rate, which applies to Argentine cards only, is now 155% higher than the official rate


The government has increased the taxes that apply to the dólar tarjeta (card dollar) exchange rate, bringing it to AR$950 to the dollar. The rate will now be closer to the financial dollar rates. The resolution implementing the raise was published this Thursday in the Official Bulletin.

The AFIP tax bureau established that for transactions subject to the card dollar rate, there will be a 100% withholding for advance payment of income tax and an additional 25% for bienes personales (personal assets).

The card dollar is the exchange rate applied to purchases made with Argentine credit or debit cards abroad. It is calculated based on the official retail dollar, with added taxes such as PAIS, income tax, and personal assets. It does not apply to foreign cards.

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With this tax adjustment, there will be a 100% withholding for income tax, 25% personal assets, added to the existing 30% for the PAIS tax. This means the card dollar will now incur a 155% tax on the value of the official dollar, which closed at AR$375 on Wednesday. Thus, the card dollar is now valued at around AR$950 this Thursday, amid the presidential transition process.

The Central Bank resumed the crawling peg system of daily micro-devaluations on November 15. That means the card dollar rate will be adjusted in line with that policy. This is done to align the price more closely with parallel dollar rates.

“The withholdings carried out will have, for the liable subjects, the nature of tax paid and will be computable, as the case may be, in the annual declarations of income tax or personal assets tax, corresponding to the first fiscal period following that in which they were carried out,” Thursday’s resolution reads.

In the considerations of the resolution, the government limited itself to explaining that “reasons of tax administration and equity make it advisable” to increase the withholding rate.

Since an AFIP resolution passed on October 10, the rate for card purchases and expenditures abroad had been the official dollar plus a 100% surcharge, stemming from the combination of the PAIS tax (30%), the 45% withholding for income tax, and another 25% for personal assets.

However, this surcharge has now increased from 100% to 155% with the new 25% income tax withholding.

The taxes applied to the official dollar now include:

  • PAIS Tax: 30%, applicable to those buying foreign currency or using cards to spend or withdraw foreign currency abroad.
  • Income tax advance withholding: 100%.
  • Personal assets: 25% on the “dólar tarjeta” and savings.

Translated from Ambito.com


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