Following similar moves in the region, including that of Colombia, Argentina’s Administración Federal de Ingresos Públicos (AFIP) will tax OTT services via credit card companies.

As reported by the Argentinean media, Alberto Abad, head of the AFIP, announced during a press conference in Cordoba that the move will be a first step to finding new taxing models for companies that are not creating tangible products, which are used as reference for traditional tax systems.

“Cable channels, which are competing with these services, are paying taxes. Why shouldn’t OTT platforms do it?” said Alberto Abad. “In our view, the main problem is the companies’ location. Where are we going to tax Netflix? This has an important impact in countries’ financial systems and, therefore, people’s quality of life.”

Since 2015, following a unilateral move from the City of Buenos Aires, OTT players have been paying a 3% tax in Argentina’s capital. Now, a similar strategy will be deployed across the country.