Clipping of news on Brazilian Culture, Law and Citizenship
29/05/2014
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Even with IOF , compensates not always use cash when traveling abroad
SAO PAULO - The consumer was surprised late last year with the news that the IOF ( Tax on Financial Operations ) was unified at 6.38 % for purchases made in foreign currency with a debit card withdrawals in foreign currency abroad , purchases of travelers checks and loading prepaid cards with foreign currency.
Prior to the announcement, was charged IOF 0.38% for those transactions , while for the credit card was already in place the rate of 6.38 % . Since the change , the consumer has shown a predilection for payment in cash while shopping abroad. According to Central Bank data , payment in cash increased 25 % in the first three quarters of this year compared to the same period last year.
However , do not always carry a large sum of money is a good alternative for international travel . Reinaldo Sundays , financial educator , president of Financial Education and Dsop Publisher Dsop , recommends taking no more than 20 % of the estimated amount the trip in kind .
The advantage of such a payment in cash is that it freezes the conversion rate , while the use of the credit card does not guarantee the stability of the exchange rate . On the other hand, both the credit card as prepaid contribute to the issue of safety and convenience shopping.
In addition to safety , financial educator says the credit card allows benefits such as mileage accrual for the next trip and discounts on some items .
We must also remember that , according to the IRS , who enters or leaves the country with more than U.S. $ 10 billion in domestic or foreign currency must make a declaration on the internet. It is also necessary to go to customs officials for the conference of the declared values is taken . carry a large amount of cash without declaring cash smuggling is considered .
Also worth considering the cost of money . The dollar price at banks and brokerage costs more expensive than converting the credit card , which reduces the advantage with cheaper IOF . Moreover , despite a much lower value , the purchase of paper money also covers an FTT of 0.38 % . The money left over at the end of the journey is also a factor to be considered while opting for cash.
Source : MSN.com
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This article was translated by an automatic translation system, and was therefore not reviewed by people.