Plane does not charge any conversion fees. However, some countries impose taxes on foreign exchange. This is out of our control as it is collected by financial institutions that process payments and pay to the local tax authorities. The rates are usually set by local governments.
Based on the currency the payment is scheduled in, the tax can be taken from the organization or the contractor.
When scheduling a payment, the organization can set the payment amount in either USD or the contractor's local currency. If the payment is scheduled in USD, the taxes will be taken out on the receiving end (contractor's payment). On the other hand, if the organization schedules the payment in the local currency, the foreign exchange taxes will be taken out on their end, and the organization will probably see a worse exchange rate.
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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