Plane does not charge any conversion fees. However, some countries impose taxes on foreign exchange transactions. These taxes are collected by financial institutions processing the payments and are then paid directly to local tax authorities. The rates are set by each country’s government, and Plane has no control over them.
It’s important to note that the amount of tax varies by country, as shown below.
Country | Currency | Tax | Tax Rate |
Argentina | ARS | Impuesto al cheque | 1.20% |
Brazil | BRL | IOF (Imposto sobre Operações Financeiras) | 0.38% |
Bolivia | BOB | ITF (Impuesto a las Transacciones Financieras) | 0.3% |
Colombia | COP | GMF (Gravamen a los Movimientos Financieros) | 0.40% |
Peru | PEN | ITF (Impuesto a las Transacciones Financieras) | 0.005%
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How taxes impact payments:
When scheduling a payment, the organization can choose to set the payment amount in either USD or the contractor's local currency.
If the payment is scheduled in USD:
The taxes will be deducted from the contractor's received payment on the receiving end.If the payment is scheduled in the local currency:
The foreign exchange taxes will be charged upfront (on the organization’s side), and the organization will likely see a worse exchange rate due to local banking and conversion fees.
Questions?
Feel free to reach out to us at support@plane.com, or use Plane's in-app chat.