COSTA RICA NEWS — The Ministerio de Hacienda (Ministry of Finance) has postponed until December 1 the start of the 2% retention by financial institutions on all card transactions.

Deputy Ministry of Finance, Fernando Rodríguez, confirmed the extention from November 1 to December 1, giving banks more time to adapt their systems and make adjustments seeing as they are the entities that must make the retentions.

Rodriguez, told Nacion.com that “… it is already decided, we have even communicated it to the banking sector, to the Costa Rican Banking Association of Banks and the House this week, so that they, in turn, can notify their partners. ”

“… When a person is pays with a card in a store, from the payment a 13% sales tax is deducted and from what is left 2% is subtracted as advance payment of tax on income, or 1.77% of the percentage of the total purchase amount.”

The retention appeared a resolution DGT-R-036-2014, published in La Gaceta on August 25 and to have gone in effect on October 1.

Source: La Nacion