Spending Pesos

[TomAtAlki]

From another thread: "[background=rgb(252, 252, 252)]using a local credit card I paid at the official rate that is about 10 pesos by euro (I can deduct the 35% of income tax)."[/background]

[background=rgb(252, 252, 252)]Would someone be so kind and explain how all this works. Is the official rate higher when spending abroad [/background]with a credit card?

You can deduct 35% of what from your credit card?

A simple primer would be appreciated.

Thanks, T/

 

[RodalfoWalsh]

Let's say you buy a 1 euro coffee.

If you use your credit card each euro you spend is charged to you as $9.50 but you also have to pay an additional $3.33 as a prepayment for income tax. When you pay your tax you can do so with the $3.33 in credit that you have.

 

[liponlegs23]

I think what this person is saying is that if they use their credit card from an Argentine bank, the purchase is at the official rate, not the blue rate. Any purchases abroad made using Argentine credit or debit cards (including foreign websites) have a 35% tax added to that purchase. People who work here and are on the payroll, paying 'ganancias' as part of their salary should, in theory be able to claim this 35% back (usually this refund is made through reduced taxes though) but it's not easy - http://www.lanacion.com.ar/1771517-compras-en-el-exterior-reves-judicial-para-la-afip . It's also even more difficult if you're a monotributista.
Hope this helps!

 

[estebandepraga]

If you have an Argentinan Credit Card

 

[rickulivi]

I think RodolfoWalsh explained it very well. In my case, in addition to paying ABL on my apartment, I have to pay another tax called Bienes Personales. I don't know what it is but it seems to be based on the value of the apartment too, plus any bank account you may have in BA. My Argentine cpa prepares the declaracion jurada, and this year I don't have to pay anything because I got a credit for using my Argentina issued credit card while travelling abroad.

Hence, the 35% tax you pay for using your credit card is returned to you. The best part is that it is automatic; somehow, the Argentine IRS keeps tab of the 35% and give this information to my cpa. All I know is that this year, and last year, I did not have to pay the tax called bienes personales because of the credit I got for using my Argentina issued credit abroad. Seems like a good deal to me.

 

[TomAtAlki]

If I am understanding, this means you are buying Euros at the official rate when you use an Argentina credit card abroad......a very good deal. But the AR gov't charges you an additional 35% to take away the good deal. Then, if you pay taxes, they give you back the 35% restoring your very good deal.

Essentially letting you buy Euros at the official rate. Please confirm if my pea brain has absorbed this correctly.

Thanks to all of you. T/

 

[RodalfoWalsh]

Yep that's exactly how it works.

 

[Bajo_cero2]

Correct, they reward those who pay tax.

In that case is cheaper to travel than to go to Mar del Plata.

 

[RodalfoWalsh]

Correct, they reward those who pay tax.

In that case is cheaper to travel than to go to Mar del Plata.

The list of places that are cheaper and more interesting to visit than Mar del Plata is nearly endless.

 

[ElQueso]

Correct, they reward those who pay tax.

In that case is cheaper to travel than to go to Mar del Plata.

So they don't reward people within the country, even if they pay taxes?