On March 9, 2023, the Legislature of the City of Buenos Aires approved the repeal of Article 316 of the City of Buenos Aires Fiscal Code through Law 6618. This article established the exclusive application of the stamp tax on credit card statements.
The stamp tax, which entailed a rate of 1.20% on the total consumption reflected in credit card statements, was implemented in response to the reduction in revenue sharing by the national government in relation to the administration of the City of Buenos Aires. Consequently, this tax was established in 2020 and came into effect on January 1, 2021, in the City of Buenos Aires.
The main objective of the Law is to eliminate the stamp tax on credit cards for all purchases made between December 22, 2022, and March 9, 2023. Furthermore, it stipulates the obligation to refund taxpayers for the credit card taxes billed during that period.
Subsequently, on May 5, it was announced by the Buenos Aires City Legislature that the corresponding reimbursement will be reflected in credit card statements issued in the City of Buenos Aires. Once the new regulations come into effect, a refund system will be implemented, resulting in a credit balance in the following month’s statement. This amount can be used, for example, to pay the corresponding statement for that month. Consequently, no additional procedures will be required to recover the paid tax.
