The PAIS Tax, implemented in December 2019, expires today, December 23, 2024, and will not be extended. This tax applied a 30% surcharge on the purchase of dollars for savings and expenses in foreign currency, including purchases with credit and debit cards abroad.
With its elimination, the "card dollar" will reduce its tax burden by 30%, dropping from approximately $1,670 to $1,355, according to the current exchange rate. However, the 30% withholding for Income Tax and Personal Property Tax will remain in effect, meaning that transactions in foreign currency will still be subject to this surcharge.
The elimination of the PAIS Tax is expected to have several impacts:
Foreign Consumption: Purchases made abroad, as well as streaming services like Netflix and Spotify, could see a reduction in their costs due to the elimination of the tax.
Imports: The removal of the tax could reflect in a decrease in import costs, potentially reducing the prices of imported products, although this effect may not be immediate or uniform.
Tourism: Travel and shopping expenses abroad will be more economical, which could encourage tourism and international purchases.
It is also important to note that, although the PAIS Tax is no longer applicable, the withholdings for Income Tax and Personal Property Tax remain in effect, so transactions in foreign currency will continue to have a 30% surcharge.
Crypto Madam ✨
With its elimination, the "card dollar" will reduce its tax burden by 30%, dropping from approximately $1,670 to $1,355, according to the current exchange rate. However, the 30% withholding for Income Tax and Personal Property Tax will remain in effect, meaning that transactions in foreign currency will still be subject to this surcharge.
The elimination of the PAIS Tax is expected to have several impacts:
Foreign Consumption: Purchases made abroad, as well as streaming services like Netflix and Spotify, could see a reduction in their costs due to the elimination of the tax.
Imports: The removal of the tax could reflect in a decrease in import costs, potentially reducing the prices of imported products, although this effect may not be immediate or uniform.
Tourism: Travel and shopping expenses abroad will be more economical, which could encourage tourism and international purchases.
It is also important to note that, although the PAIS Tax is no longer applicable, the withholdings for Income Tax and Personal Property Tax remain in effect, so transactions in foreign currency will continue to have a 30% surcharge.
Crypto Madam ✨
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