by means of General Resolution 4815 / 2020 As published in the Official Gazette on September 16, the central bank officially introduced a new tax on certain foreign currency transactions. In this post, we’ll explain what this tax is about, why it includes an advertising tax that affects your ads on social media, and how you can mitigate its impact.
What is the new tax about?
It is a perceived (ie a pre-collected tax) of 35% on the price of the official dollar, affecting both the purchase of that ticket and credit and/or debit card payments in that currency.
This new surcharge will be added to 30% of the PAIS tax (or 8% in some cases) and introduced as a payment due to the income or wealth taxes, as the case may be, according to the regulations of each taxpayer.
If you need to pay these taxes, You can regain the 35% probability in your annual affidavitwhich takes place in the following year.
If there is a balance in favor of the perceptions, this amount can be used to cancel other tax obligations.
What are the exceptions to this tax?
Excluded from the 35% tax are expenses related to healthcare services, purchase of medicines, purchase of books in any format, use of educational platforms and software for educational purposes, official research projects and the purchase of materials for firefighting and civil protection abroad through recognized bodies.
How do I pay the 35% surcharge?
perception will be charged automatically at the time you buy dollars, when you pay your credit card bill in a foreign currency, or when your account is debited with a dollar expense.
So what you will see with each operation are three separate amounts:
- The official price of the retail dollar
- The PAIS tax (30% or 8% depending on the case)
- The New Perception of 35%
attention: If you pay for online ads, this perception will be reflected in the summary of your chosen payment method, but not in the platform spend summaries. On both Facebook and Google, you see the investment without the impact of the tax.
How does this new measure affect (or could) affect my online business?
Most companies that sell their products online use online advertising as part of their digital marketing strategy. Google, Instagram and Facebook Ads are some of the most popular ones.
Generally, these services are paid for monthly in dollars using a credit or debit card, and their cost depends on how much money the brand invests.
If you advertise your business online and pay with a non-local credit or debit card (such as Visa or Mastercard), it’s important to know this You have to pay the 35% surchargein addition to these costs will be deducted from your monthly purchase quota of $200.
At this point it should be clarified that although there is no limit to dollarized consumption (you can consume the amount of dollars you need), what is imposed is the Quota due to the purchase of this currency.
That means if you have, say, $600 in usage on your credit card in one month, you won’t be able to buy dollar savings for the next 3 months.
How can I pay my Google ads in pesos?
To avoid the 35% surcharge (and having to wait for the next affidavit to get your money back), we recommend you do this Change the payment method to a prepaid method. This means you need to top up your ad account balance, which will be used throughout the month.
This allows you to pay in local currency (pesos) and only pay VAT (21%) and PAIS tax (8%).
Important: Since it is a prepaid method, you must be very careful that the balance on your accounts is not depleted to prevent the campaigns from being deactivated.
All you have to do is contact him. Google Ads Customer Service and request them Conversion of payment to “manual form”.
Thus, you can choose to pay for your ads in pesos through a transfer to PagoMisCuentas or from Banelco. You will be given a code that you must use every time you want to top up your balance.
Eye! There is also the possibility to choose the manual payment method by credit card, but in this case the 35% will be charged.
Top: We recommend manual prepayments as it may take 3 to 5 business days for funds to appear.
Regarding the ads on Instagram and Facebook, you have to pay the perception of 35% with both manual and automatic payment methods.
What are we doing at Tiendanube to accompany you right now?
Our priority is the health of your business, that’s why at Tiendanube We talk to strategic partners like Google and Facebook to understand how we can work together and support you in these complex times. As soon as we have updates on the progress of these talks, we will post them here and on our Instagram.
Today more than ever #we are together.
This article was written in collaboration with Atomic.