15% surcharge on foreign transactions on Argentine credit cards starting Sep 1

[anjuna11]

Posted in the Pesos to Euros/Dollars thread but thought this warranted its own discussion, especially if people want to try some last-minute purchases before the surcharge goes into effect.

http://www.clarin.com/economia/AFIP-recargara-compras-exterior-tarjeta_0_764923763.html

Google Translate: http://translate.google.com/transla...ras-exterior-tarjeta_0_764923763.html&act=url


Also on La Nacion but Clarin has more detail:

http://www.lanacion.com.ar/1503848-l...recargo-del-15

Google Translate: http://translate.google.com/translat...del-15&act=url


Seems there are some exceptions, but not entirely sure who/what would fall under them.

 

[JoeGillis]

The surcharge is just in time to help pay for the new movie studio project in Puerto Madero! It's mind-boggling that this administration can even contemplate such an endeavor when one of the major priorities of the government should be the purchase of NEW trains for all route systems, not to mention a thorough upgrading of the rails themselves. Ah, but no, this is Argentina. Not a chance for something that would truly benefit the country.

 

[mariposa]

http://www.buenosairesherald.com/ar...oad-to-be-charged-with-15-income-tax-advance-

 

[mariposa]

according to pagina 12 it's october 1.

http://www.pagina12.com.ar/diario/ultimas/20-202251-2012-08-30.html

(but september 1 is probably correct as AFIP never gives anybody notice...)

 

[prunes61]

15% isnt bad if the foreign currency (US$) is being converted at the official rate on the cardholder's bank statement inasmuch as the spread between official and parallel is over 30%.

 

[earlyretirement]

15% isnt bad if the foreign currency (US$) is being converted at the official rate on the cardholder's bank statement inasmuch as the spread between official and parallel is over 30%.

Funny and very telling that things are so bad in Argentina that people actually say it's not too bad to be charged an extra 15% for absolutely nothing using their credit card abroad. LOL.

 

[anjuna11]

Funny and very telling that things are so bad in Argentina that people actually say it's not too bad to be charged an extra 15% for absolutely nothing using their credit card abroad. LOL.

Very true. Interesting that the BAHerald article mentions the amount paid in foreign transaction surcharge tax will be income tax deductible.

I assume this is deductible in the US sense where it reduces your taxable income, thus making the actual surcharge 15%*(1 - marginal tax rate). Works out to 9.75% assuming a 35% tax rate.

If they are saying deductible but actually mean tax credit in the US sense, then it wouldn't make much of a difference at all, save for the fact that you'd wait up to a year (with 25% inflation) btw. when you paid the surcharge and when you got a discount off your taxes. I'm assuming it's the former.

 

[prunes61]

Funny and very telling that things are so bad in Argentina that people actually say it's not too bad to be charged an extra 15% for absolutely nothing using their credit card abroad. LOL.

Maybe I misunderstand the surcharge. If I hold a Arg bank issued card, go to NYC, buy a US$100 widget using my card, when my statement arrives it will contain a charge of 460 pesos plus the surcharge of 69 pesos for a total charge of 529 pesos. In effect I am paying 5.29 pesos for a US dollar. Have I got it wrong?

 

[anjuna11]

Maybe I misunderstand the surcharge. If I hold a Arg bank issued card, go to NYC, buy a US$100 widget using my card, when my statement arrives it will contain a charge of 460 pesos plus the surcharge of 69 pesos for a total charge of 529 pesos. In effect I am paying 5.29 pesos for a US dollar. Have I got it wrong?

You've got the surcharge right. But right now you would just get a charge of 460 pesos and pay 4.6 pesos for a US dollar. After all, that is the official rate of exchange.

Why would you expect to pay any more than 4.6 pesos per US dollar on an Argentine credit card, when you are making transactions processed by banks which are legally operating (not dodgy exchange houses)? This 15% surcharge cannot be justified on any reasonable basis.

I understand you're saying 15% is not that bad when you look at 5.29 pesos vs. 6.2 pesos on the black market. However, the point is that anything more than 0% is freaking ridiculous because it is being levied for no (legitimate) reason and is just another example of how the 4.6 pesos official rate is not reality and, in fact, the government will actively prevent you from obtaining the 'official' rate which it sets!

 

[expatinowncountry]

I can't believe this country