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Holidays abroad: how should I pay, in cash, debit or credit?

2023-11-28T18:57:31.255Z

Highlights: The rise of the card dollar, which this Tuesday trades at $956, and the fall of the parallel dollar, with the blue operating at less than $20 difference, at $975, changed the logic of many Argentine travelers. Tax expert Sebastián Dominguez said: "Argentina is minute by minute, everything is constantly changing" "In my opinion, today it is convenient to use the credit card," summarized the specialist in a video published on his Tik Tok account. "Without the incentive of cashback and with the MEP dollar below $900, the debit card doesn't look as attractive to pay abroad"


With the financial dollar on the decline and after the latest adjustments by the AFIP on the "card dollar", it changes which is the most efficient means of payment for travelers.


In the transition to December 10, there were some modifications in the foreign exchange market that will surely impact the way Argentines consume and save. While some took advantage of the offers at different times of the year and rushed to travel or get a ticket before the change of government, the question that is repeated these days is how it is convenient to pay abroad.

The rise of the card dollar, which this Tuesday trades at $956 and the fall of the parallel dollar, with the blue operating at less than $20 difference, at $975, changed the logic of many Argentine travelers who until a couple of weeks preferred to move with the debit card, in order to "freeze" the price of their consumption.

From Miami, tax expert Sebastián Dominguez said: "Argentina is minute by minute, everything is constantly changing" and made his analysis to explain the way in which he chooses to pay this Tuesday, November 28, in a context of the fall of the parallel dollar.

Domínguez pointed out that before the last update of the AFIP that raised the tax cost of the "card dollar" to 155% over the official one, it was convenient to cancel debit consumption because it was the way to set an exchange rate and had the advantage for bank customers of allowing them to request the refund of those perceptions for the period 2023, which would be credited to their accounts from January.

"That changed on November 23 when the AFIP increased the perception of profits from 45% to 100% and maintained that of personal assets at 25%. The additional change that it introduced, very important, is that the perceptions can be computed to the period following the one in which they were made, that is, only in 2025," said Domínguez, adding: "The perceptions have no recovery value because with inflation like the current one in Argentina they will end up liquefied in a year and a half."

In any case, Domínguez clarified that those people who are not taxpayers of the Income and Personal Property Tax, can request the refund of the perceptions as of next January

Without the incentive of cashback and with the MEP dollar below $900, the debit card doesn't look as attractive to pay abroad. "If you had money in your bank account, now you can use those pesos to buy MEP dollars and pay for expenses abroad with dollars in cash," said the tax expert, who, however, said that a better option could be to use a credit card.

"If, at the time of the expiration of the summary, the MEP dollar is still lower than the price of the card dollar, the dollars purchased during these days can be used to pay the expenses in foreign currency of the summary, so as not to pay either the Country Tax or the perceptions. But, if the price of the dollar is above the dollar card, what would be convenient is to sell those bills and pay the total of the summary with the pesos."

"In my opinion, today it is convenient to use the credit card," summarized the specialist in a video published on his Tik Tok account.

NE

Source: clarin

All business articles on 2023-11-28

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