Monday, 30 November 2020

Costa Rica Mulls Eliminating 2% Retention from Tips

Figueroa-RestaurantesQCOSTARICA – The union of restaurants in the country argues that tipping does not count as part of their profits and are asking for them to be exempt from the 2% retained on card payments by way of advance payment of income.

At the moment the Ministry of Finance (Ministerio de Hacienda in Spanish) is evaluating the request by the Costa Rican Chamber of Restaurants (Cámara Costarricense de Restaurantes), since according to representatives of this guild more is retained from them than from other stores.

Jorge Figueroa, president of these entrepreneurs, told that “… We believe that [because of] the 10% tip being calculated in the retention, as well as any ‘extratip’ voluntarily given by some customers means that more is retained than from other businesses. The 10% gratuity and the extra ‘tip’ also becomes a labor issue. ”

- Advertisement -

How is it working out? Bankers and businessmen surveyed by La Nacion say that retention is working smoothly; however, they have concerns.

At the Banco de Costa Rica (BCR), Luis Diego Montero, manager of Cards, explained that retention is that went into effect on January 19 is running properly.

“Going from the previous system of quartely payments of advances on income tax, to the new system of daily retention, daily cash flow and flexibility to cope with other business needs is diminished,” said Diego Alonso, VP at Automercado.

Wílliam Zamora, partner of Bijoux and BJX Mobile signatures, added “… Any type of retention on trade, above all, on small businessness, is an obstalce to operating because the margins they work with in small business es are not the same as those of large companies. ”

- Advertisement -

Adrian Vega, manager at Hamburguesía, told La Nacion that in January their cash flow was affected, but believes in bad months, they will be.

Yolanda Fernandez, manager of corporate affairs for Walmart, said she did not yet have data to make a judgment.


- Advertisement -
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

AyA Out of Control: Ombudswoman denounces utility

QCOSTARICA - Costa Rica's Ombudswoman, Catalina Crespo, denounced that the Instituto...

Ghost lodging: the new way to scam families on vacation

QCOSTARICA - If it seems better than expected, the ads for...


Carlos Alvarado and Claudia Dobles working from home after having ‘indirect’ contact with a person with covid-19

QCOSTARICA - Costa Rica President, Carlos Alvarado, and his wife, Claudia Dobles, are working from after having had “indirect” contact with a person with...

New step against evasion? The Treasury will have a closer look at taxpayers

QCOSTARICA -  Taxpayer movements with the Treasury will have more controls as of December 1, with the addition of the 13-digit code known as...

Low-cost airline Wingo resumes flights between Bogotá and San José de Costa Rica

QCOSTARICA TRAVEL - Wingo, the Colombian-flag low-cost airline, announced that it will resume its direct flights between Bogotá (BOG) and San José (SJO), with...

Vehicle restriction stops car theft

QCOSTARICA - The sanitary vehicular restrictions has put a damper on the operations of vehicle theft gangs (robaccaros in Spanish), resulting in a considerable...

U.S. Embassy San Jose closed Thursday and Monday

QCOSTARICA - This note in from the United States Embassy in San Jose, that they will be on Thursday, November 26, 2020, to commemorate...

This week begins the transition to the dry season in the Central Valley and Guanacaste

QCOSTARICA - The transition to the dry season in the Central Valley and the Guanacaste (North Pacific) will begin this week, as these areas...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.