QCOSTARICA – The Ministerio de Hacienda (Ministry of Finance) has announced that tour operators and travel agencies are not subject to the 2% tax withholding (retención in Spanish) relating to advanced income tax payment on credit and debit card transactions.
Hacienda on Tuesday said that at the request of the representatives of the tourism industry, the General Department of Taxation review the status of tour operators and travel agencies and exclude them from withholding money, on the grounds that these two activities in the tourism sector supported the request with their technical studies which were reviewed by the Tax Administration Office.
This exclusion does not include the hotel industry.
Through document DR-006-2015 of 1.16.15, signed by the Director of Revenue and the Sub Director of Administration of Integral Accounts and Returns and aimed at ACOT, it is indicated that based on a technical study carried out by a group of agencies in travel and tourism (tour operators), that they should be excluded from this retention.
The exclusion to the tax withholding also applies to gasoline sales and public transportation, such as taxis and buses.
Since last week, businesses accepting payments with plastic (a credit or debit card) made for goods and services are subject to a withholding applied to their income tax liability.
The withholding amount is on the net sale (purchase price less the 13% sales tax).