New Contributor Added to Country Tax Net: US$7 Billion in Trapped Dividends Set to be Released

The country tax net has spread once again, with a new contributor added to the mix. As of today, this tax, which applies to the purchase of foreign currency, will cover companies that transfer dividends trapped by stocks to their parent companies. Market estimates show that there are US$7 billion trapped in stocks that should be transferred abroad. These transfers had been halted in the previous government, but days ago the current administration enabled the use of Bopreal bonds (originally designed for importers) to settle these debts.

Today it was announced that the rate for operations carried out with Bopreal will be 17.5%. Economist Amilcar Collante estimated on social media that an additional US$1 billion could be raised this way. Since the PAIS tax is not shared, all revenue from this tax goes to the national coffers. In the first quarter, it contributed 10% of the total collection. Originally, this tax included a 30% rate on operations in dollars and the purchase of tickets, but it has since been extended to also tax imports at 17.5%.

In March, the PAIS Tax saw a nominal increase of 1,106.5% year-on-year and 208.8% in real terms. According to ACM consulting firm, these taxes are becoming increasingly important for national revenue during the new administration. While the PAIS tax is set to disappear in December, it has become an essential tool for the government to maintain a surplus. It is expected that this tax will disappear once exchange rate unification is carried out, which has been delayed from its initial June timeline.

The significance of the PAIS tax has reduced its chances of disappearing quickly as it has become a central tool for generating revenue for