The situation in Argentina changes often, and local banks and card issuers at times interpret the same regulations differently. However, when payers in Argentina purchase goods or services through a foreign merchant, the local bank or card issuer acts as the withholding agent for particular taxes. The general tax rate relevant to the purchase of foreign currency, known as “Impuesto PAIS”, is 30%. However, other applicable taxes vary depending on the good or service purchased.
For card payments, the “Impuesto Pais” will automatically be collected by the card issuer upon making a payment to a foreign merchant. For bank transfers, it is best to consult directly with the payer’s bank in order to better understand whether the “Impuesto PAIS” will automatically be applied or not.
It may be helpful to note that payments for online education could be exempt from “Impuesto PAIS”. If the student is not leaving Argentina to carry out their studies (even if provided by an international institution), the payment may not be subject to the relevant tax. Unfortunately, Flywire cannot control when a bank or card issuer applies local taxes.
If payers feel that their bank or card issuer has applied “Impuesto PAIS” to their payment in error, the payer may file a claim with their local tax authorities for reimbursement of the amount.
Last Updated: March 8, 2023