Argentina to Tax Credit Card Use

September 3, 2012 Taxation in Argentina

Credit CardBUENOS AIRES – Argentina is taking steps to fight tax evasion by implementing  new reporting rules and instating a tax on the use of credit cards issued in the country.

On August 31st the government of Argentina released a bulletin announcing new reporting rules for Argentinean banks and instating a 15 percent tax on purchases made with credit cards outside of the country.

The new tax is intended to stop wealthy Argentinians from circumventing the country’s currency control regulations.

At a press conference to announce the new rules, the chief of the the national tax agency Administración Federal de Ingresos Públicos Ricardo Echegaray said that the tax would only affect approximately 168 000 taxpayers in the country.

Under the newly announced reporting rules, banks and financial institutions in Argentina are required to provide the country’s tax authorities with information on all purchase made with a credit cards issued in Argentina.

The change is intended to provide tax authorities with a much greater amount of information on taxpayers’ spending, and will help the government crackdown on taxpayers whose lifestyles exceed their declared incomes.

Previously banks in Argentina were only required to submit information about purchases exceeding ARS 3 000.

The new reporting requirements came into effect on September 1st, and apply to all credit card purchases made in Argentina and overseas.

Photo by barsen