Buying Bitcoin with Paid Market in Argentina leaves high tax

Financial unit of the Free Market goes through adjustments in the country and affects the digital transactions of customers.

The Free Market is today one of the main companies in Latin America and even has its own financial unit for payments. Called Paid Market, the division of the company found itself in a polemic last week that could impact even those who intend to buy Bitcoin in Argentina.

Created in 2001, the so-called „Check Tax“ is a reality in the life of Argentines. Until then, the Mercado Pago (Paid Market) still didn’t collect this tax from its clients.

However, in an e-mail sent to its clients in the last days, the company communicated the adhesion. In other words, who sells products through the Free Market and uses the company’s payment tool, starts to pay tax.

The case gained repercussion in the country and the Paid Market ended up on Twitter trending topics.
To buy Bitcoin in Argentina using Mercado Pago, customers are faced with „new tax“.

Argentina is today one of the main countries in Latin America to join Bitcoin. There, the population dives more and more into cryptomorphs to escape from high inflation. In addition, the uncontrolled exchange rate in the country registers one of the worst marks of all history.

Although Argentina is one of the countries with more ATMs and Bitcoin brokers, many also use the Free Market. The Paid Market tool thus greatly facilitates digital transactions for sellers and buyers.

The reality, however, changes with the company adhering to a tax, called Check Fee. Thus, whoever buys Bitcoin or any product with the Mercado Pago in Argentina, may face a 1.2% charge on the transaction.

In the Paid Market page, the company makes it clear that those who do not have the amount of tax in their account will be notified. The measure began to be valid and shocked the fans of the company in the country.

„You pay the tax at the moment you make the transfer to a third party . For example, if you want to transfer $ 1,000, you need to have $ 1,012 in your account so that we can debit the amount of tax,“ explains the page of the Paid Market in Argentina.

Tax created in 2001 has been postponed for so many years that it is one of the main sources of the government today

According to the newspaper La Nacion, the check tax was created in 2001. However, it should have worked for only one year and should have been cancelled in 2002.

At the time the tax was extended and so it has been over the years, i.e. in 2020 the tax is still valid. Today in Argentina this tax is already considered the third most important in the country, according to La Nacion.

The Paid Market still makes clear that not all clients will have this tax. Therefore, it asks its clients to review their payment information on the platform to avoid unnecessary charges.

„On which transfers do I not pay the tax?

Transfers to a bank account with the same ownership: If you use the Paid Market to sell, check if the ownership of your account corresponds to that of your company.

Transfers to any CVU“, explained the company.

Despite the controversy, Bitcoin continues to rise in Argentina, breaking records in 2020. There, the price of Bitcoin today is still quoted at 1,053,896.46 Argentine pesos, with the dollar worth 78 ARS, according to Google data.