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Taxes

The Corporations Tax Is On. Legislators Approve Bill In Second And Final Debate.

The Corporations Tax Is On. Legislators Approve Bill In Second And Final Debate.

Q COSTA RICA – On Thursday, March 16, legislators approved in second and final debate the “tax on corporations” bill. Thus, owners of corporations, starting in July, must start paying the tax and continue to be liable for any accumulated debt of the previous law. When will the law take effect? Following Thursday’s approval, the […]

Attorney General: Decree Restricting Importation Of New Cars Is Unconstitutional

Attorney General: Decree Restricting Importation Of New Cars Is Unconstitutional

Q COSTA RICA – “It restricts the freedom of commerce and implies an intrusion into the market,” says Costa Rica’s Attorney General, Julio Jurado, commenting on the decree emitted by the government last August, that prevents importers of new vehicles from introducing into the country late-models before the month of September. This year, for example, […]

Legislators Get Constitutional Green Light To Revive ‘Corporations Tax’

Legislators Get Constitutional Green Light To Revive ‘Corporations Tax’

Q COSTA RICA – The Constitutional Court or Sala IV as it is commonly known gave the green light to the legislative bill to revive the ‘corporations tax’. The Court said it found no procedural or substantive defects (errors). The vote was unanimous. The Court decision followed a consultation by legislator Otto Guevara, who opposes […]

Tourism Operators and Tax Man In Conflict Over Sales Tax On Recreation

Tourism Operators and Tax Man In Conflict Over Sales Tax On Recreation

Q COSTA RICA  – The Cámara Nacional de Turismo (Canatur)  – National Chamber of Tourism  – denounced that Ministerio de Hacienda (Ministry of Finance) intends to collect sales tax on services generated in recreation and similar tourist centers. The hoteliers and tourist entrepreneurs assert that the intentions of the Directorate General of Taxation (DGT) of […]

The Basic Points Of The New Corporations Tax Law

The Basic Points Of The New Corporations Tax Law

Q COSTA RICA – If the draft Ley de Impuesto a las Personas Jurídicas (Corporations Tax Law) has no constitutional problems, it would come into force by the middle of the year, requiring all active and inactive corporations, including branches of foreign companies, their legal representatives and limited liability companies, as well as limited partnerships, […]

People Renting Houses and Apartments For Less Than A Month Must Pay Sales And Income Tax

People Renting Houses and Apartments For Less Than A Month Must Pay Sales And Income Tax

Q COSTA RICA – Rentals of houses, apartments and condominiums for a period of less than one month is subject to sales and income tax, indicates the Ministry of Finance (Ministerio de Hacienda) in a clarification of the new law to improve the fight against tax fraud, published in La Gaceta on December 20, 2016. […]

Airbnb Offers To Collect Sales Tax For Its Transactions in Costa Rica

Airbnb Offers To Collect Sales Tax For Its Transactions in Costa Rica

Q COSTA RICA NEWS – The more than 6,600 hosts using Airbnb in Costa Rica may soon see the sales tax deducted from their rentals. This was confirmed by Shawn Sullivan, public policy lead for Central America and the Caribbean, who in August met with the Deputy Minister of Revenue, Fernando Rodríguez and the General […]

Legislative Christmas Gift of Tax On Corporations Almost Ready

Legislative Christmas Gift of Tax On Corporations Almost Ready

The controversial draft Law on Tax on Corporations (Ley de Impuesto a las Personas Jurídicas), to which legislator and perennial presidential candidate, Otto Guevara, who had sworn to clog the process with motions at the committee level, to speak from more than 100 hours, is now ready for the final legislative process. The Libertarain legislator […]

Costa Rica Improves Tax Evasion Controls

Costa Rica Improves Tax Evasion Controls

(QCOTARICA) The Directorate General of Taxation (Dirección General de Tributación) has hired an external service that cross matches taxpayer data in public databases to identify suspicious patterns that might suggest misconduct. The project called “Modelo Predictivo” (Predictive Model) started to be implemented by the Ministry of Finance (Ministerio de Hacienda) this year, and aims to […]

Costa Rica Food Industry Opposes Tax Exemptions for Food

Costa Rica Food Industry Opposes Tax Exemptions for Food

  Costa Rica’s food industry is opposed to the executive decree which eliminates the exemption from payment of sales tax on some food products. From a statement issued by the  Cámara Costarricense de la Industria Alimentaria(CACIA) – Costa Rican Chamber of Food Industry: The CACIA sent a note to the Finance Minister protesting against the […]

Costa Rica Considers Anti-Tax Evasion Bill

Costa Rica Considers Anti-Tax Evasion Bill

A bill containing measures to combat tax evasion is close to being endorsed by Costa Rica’s legislature, according to the country’s Ministry of Finance. The proposals in the Bill are to remove existing legal loopholes used to avoid paying taxes. Among the proposals is a requirement that businesses providing services to the public accept payments […]

Costa Rica and Germany Agree to Eliminate Double Taxation

Costa Rica and Germany Agree to Eliminate Double Taxation

From January 1, 2017 the agreement ratified between both parties to avoid double taxation of income and assets will come into effect. From a statement issued by the Ministry of Foreign Affairs in Costa Rica: On Wednesday August 10 at the headquarters of the Federal Ministry of Foreign Affairs in Germany, a ceremony was held […]

Creation Of A Shareholder Registry Revived in Costa Rica

Creation Of A Shareholder Registry Revived in Costa Rica

QCOSTARICA – Legislators of the Financial Affairs Committee (Comisión de Asuntos Hacendarios) on Tuesday approved a the text for the draft tax fraud bill that creates a registry of shareholders to which the tax authority would have unrestricted access. The main objective of the draft is to improve the fight against tax fraud, enabling the […]

Shaking The Money Tree, Costa Rica Proposes Global Income Tax

Shaking The Money Tree, Costa Rica Proposes Global Income Tax

QCOSTARICA – Under pressure to raise revenue and reduce deficits, the Government of Costa Rica is preparing to collect income tax not only on earnings by persons or corporations within the country, but also on income generated abroad, a global income tax (renta mundial in Spanish). Currently, in Costa Rica the taxation is based on […]

Costa Rican President Solis Urges Legislators To Approve Tax Reforms

Costa Rican President Solis Urges Legislators To Approve Tax Reforms

QCOSTARICA – Approaching mid term and delays in getting through his tax reform plan, Costa Rica President, Luis Guillermo Solís, has appealed to legisalture for approval before the end of the year. The President said at a press conference that approval of the tax reforms is a top priority. He said that, following a two-year […]

Internatoinal Monteray Fund Supports Costa Rica’s Fiscal Reforms

QCOSTARICA by Mike Godfrey, Tax-News.com – The International Monetary Fund (IMF) has welcomed the Costa Rican Government’s medium-term strategy to strengthen public finances by about 2.5% of gross domestic product (GDP) with tax-raising measures. The Fund said in a statement following its 2016 Article IV consultation with the country that the strategy is appropriate considering […]

Costa Rica Hails Recognition Of Tax Transparency Progress

Costa Rica Hails Recognition Of Tax Transparency Progress

QCOSTARICA via Tax-News.com – Costa Rica has welcomed recognition from the Organisation for Economic Cooperation and Development for its progress on tax transparency reforms. The OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes on October 30, 2015, released a report following its “Phase 2” review of Costa Rica’s exchange of information […]

Uber And Its Drivers “Must Pay Income Tax”

Uber And Its Drivers “Must Pay Income Tax”

QCOSTARICA – Being a Uber driver is not as simple as registering as a driver and “a job”, a second job for many or be exempt from paying income tax. The tax expert for Deloitte, Alan Saborio, says that both Uber and the drivers must pay income tax, just any other self-employed person. Independent or […]

Taxation Requires Professionals To Disclose Client List

Taxation Requires Professionals To Disclose Client List

QCOSTARICA – The next time you visit a doctor, dentist, lawyer, accountant or any other professional, keep in mind that your information is no long priviliged. Aiming reduce tax evasion by professionals, the  Directorate General of Taxation (Dirección General de Tributación – DGT)  is requiring professionals hand over their client list. According to an article […]

Costa Rica: Tax and Construction Sector

QCOSTARICA – The union of builders has warned that the proposed sales and income tax increases will make costs of services and supplies more expensive, raising the cost of building a home by 12%. From a statement issued by the Costa Rican Chamber of Construction (CCC): Families that want to build a house will have […]

Costa Rica And Mexico Share Experiences On Tax Info Exchange

Costa Rica And Mexico Share Experiences On Tax Info Exchange

(QCOSTARICA) — Officials from Mexico’s Tax Administration Service (SAT) last month met with Costa Rican tax administration officials, to share their experiences in the area of tax information exchange. The Costa Rican authorities learned from Mexico’s experience in implementing the US Foreign Account Tax Compliance Act (FATCA) and the OECD’s Common Reporting Standard (CRS), according […]