Every time you pay in dollars with an Argentine bank card, a portion of that surcharge is not a final tax: it is an advance tax payment that, depending on your tax profile, you can recover.

Here, we explain who is entitled to this refund and how to avoid tax withholdings (percepciones) from the start.

Download the belo app and check how to pay in dollars using your balance according to your account and current terms.

Why you are charged tax withholdings when paying in dollars

Every time you use an Argentine bank card to pay in dollars, the amount you see on your statement includes surcharges that many mistake for final taxes.

Tax withholding refunds exist precisely because these surcharges do not always apply, and a significant portion of those who pay them are entitled to recover them.

Income tax withholdings and the tax withholding linked to Personal Assets Tax function as advance payments.

ARCA automatically applies them to foreign currency purchases made with cards issued in Argentina, under the assumption that anyone spending in dollars has sufficient tax-paying capacity to be subject to these taxes.

The problem is that this assumption does not apply to all tax profiles: a monotributista (simplified regime taxpayer) paying for an international subscription receives the same withholding as a registered Income Tax payer with high earnings.

The mechanism is automatic because the financial institution acts as a withholding agent.

The transaction is recorded, the current percentage of card dollar tax withholdings is applied to the amount converted to pesos, and that charge appears on the statement alongside the original transaction.

For those who do not pay Income Tax or Personal Assets Tax, the money remains withheld until a refund is requested.

Who can request a refund and who absorbs it

The difference between recovering that money or losing it depends on each person's tax profile.

A taxpayer registered under the General Regime who files an Income Tax return takes these withholdings as a tax credit, deducting them from the tax owed.

In that case, the withholding fulfills its original purpose and there is nothing to claim. The scenario changes for those who are not subject to these taxes.

A monotributista who paid for a streaming service in dollars with a credit card is entitled to a refund of the 30% tax withholding, because the monotributo already includes a unified tax component and that person does not file an Income Tax return to claim the credit.

The same applies to employees whose income does not exceed the non-taxable minimum, or retirees who do not pay Personal Assets Tax.

Profiles that can request a refund

• Monotributistas who paid for services or purchases in foreign currency with an Argentine bank card, as the monotributo includes a unified tax component and does not require filing an Income Tax return where the credit can be claimed.

• Employees whose income does not exceed the non-taxable minimum for income tax.

• Retirees who do not pay Personal Assets Tax and to whom the withholding linked to that tax does not apply.

For these profiles, ARCA provides a refund request mechanism. Deadlines, forms, and conditions may be updated, so it is advisable to check them directly on the agency's official website.

Passing on this right is equivalent to giving away a percentage of every dollar spent with a bank card.

A traveler who pays the equivalent of several thousand dollars by card may see a significant additional percentage applied as withholdings on the total converted to pesos.

If that traveler is a monotributista and does not request the refund, that percentage becomes a permanent cost they did not have to bear.

How to avoid tax withholdings when paying in dollars

Withholdings are generated when the foreign currency expense goes through the Argentine banking system's currency conversion process.

When you pay with a card issued in Argentina and the transaction is settled in pesos, the financial institution applies the exchange rate plus the corresponding withholdings. If the payment is made directly from your own dollar balance, without a forced conversion to pesos, that process is not triggered in the same way.

This logic explains why more and more people are looking for alternatives to the traditional bank credit card system for their international expenses.

At belo, we designed a solution for this: the belo LUX virtual card (Visa) allows you to operate with a dollar balance from the app, with the amount set at the time of payment and without depending on the statement closing date or the exchange rate applied days later.

Regardless of the method you choose, there is a habit worth adopting for any transaction in dollars.

Always ask for the transaction receipt showing the amount in the original currency, the exchange rate applied, and the breakdown of withholdings.

That receipt is the proof you need both to claim the withholdings on your tax return and to initiate a refund request with ARCA. Without that record, reconstructing the amounts later becomes much more difficult.

What to include in the receipt for each dollar transaction

• The amount in the original currency of the transaction, prior to any conversion.

• The exchange rate applied in the settlement, when the payment underwent conversion to pesos.

• The breakdown of tax withholdings applied to that transaction.

PAIS Tax, tax withholdings, and what remains in effect

A common confusion mixes up the PAIS Tax with the withholdings, as if they were the same thing.

The PAIS Tax was a specific tax that levied an additional percentage on the purchase of dollars and expenses in foreign currency. That tax ceased to apply in December 2024, when the legal timeframe supporting it expired.

Differences between the PAIS Tax and tax withholdings

The withholdings linked to Income and Personal Assets Tax fall under a different regime and remain in effect.

As long as ARCA maintains the advance withholding scheme on foreign currency purchases, every dollar payment made with a bank card will continue to generate these withholdings.

Many users assumed that when the PAIS Tax expired all surcharges would disappear, only to find on their first 2025 statement that the withholdings were still there.

The exact percentages applied today to each type of transaction may have changed, so it is advisable to check the current rates directly on ARCA's website or with an accountant.

What does not change is that the surcharge functions as an advance tax payment and, depending on your tax situation, can be recovered or claimed as an advance payment on subscriptions.

That distinction is what separates those who end up overpaying from those who use the system to their advantage. Download the belo app and check the current conditions according to your account.

Frequently asked questions about tax withholding refunds: what they are, who can request them, and how to avoid them when paying in dollars

How long does it take for ARCA to refund tax withholdings?

Timeframes vary depending on the fiscal period and the volume of applications processed by the agency. It is best to check updated processing times directly on ARCA's official website, as they can change without prior notice.

Do tax withholdings also apply to installment purchases in dollars?

Yes. The withholding is calculated on the total amount of the foreign currency purchase converted to pesos, regardless of whether the purchase was financed in installments. The charge appears on the statement where the original purchase is recorded.

Can a self-employed individual registered under the General Regime request a refund?

A self-employed worker registered for Income Tax uses the withholdings as an advance payment on their tax return, meaning they cannot access the direct refund mechanism. Only those who are not subject to Income Tax or Personal Assets Tax can request a refund from ARCA.

Does a prepaid card in dollars avoid tax withholdings completely?

When the payment is made using your own dollar balance without undergoing a forced conversion to pesos within the Argentine banking system, withholdings are not triggered in the same way as with a traditional bank credit card. The mechanics depend on the instrument and the settlement process used by each institution.

What happens if I don't keep the receipt for my dollar purchase?

Without the receipt showing the original amount, the exchange rate, and the applied withholdings, reconstructing the data for a tax return or a refund process with ARCA becomes significantly harder. Keeping that record from the moment of payment is the most practical habit to protect that right.