ARGENTINA

Indirect Tax News - December 2020

Fiscal consensus - Implementation of stamp tax on credit and purchase cards in the city of Buenos Aires

On 20 November 2020 the draft budget for the fiscal year 2021 was sent to the Legislature of the City of Buenos Aires (CABA).

Among the main fiscal changes announced is implementation of Stamp Tax on the settlement and periodic statements provided by credit card and purchase card issuers to holders of such cards.

The new tax is applied directly on the total consumption amounts shown on the monthly statements (net of adjustments related to previous balances). Debit card purchases are excluded.

The applicable rate is 1.2% and the credit and purchase card issuers collect the corresponding tax from the holders, pursuant to the collection regime established by the Government Administration of Public Revenue.

It is worth noting that other provinces, such as Buenos Aires, Córdoba, Mendoza, among others, have already implemented the tax.

Finally, we highlight that the reason for implementing the new tax is to offset a 2020 a cut in the amount of the Revenue Sharing System that CABA is subject to. Indeed, according to information that has emerged, the new provision is only expected to be applicable until the aforementioned revenue sharing system is restored.

Guillermo Jaime Poch
gpoch@bdoargentina.com

Alberto Fabián Mastandrea
amastandrea@bdoargentina.com