Friday 30 September 2022

If your monthly income exceeds ¢683 thousand, you would have to pay income tax

Income tax to be paid in the future would be up to twice as high as the current, in some cases; To date, monthly incomes less than ¢842 thousand are exempt

Paying the bills


Tourists put their lives at risk due to Costa Rica’s poor road conditions

QCOSTARICA - The poor state of national routes represents...

INS will maintain November 1 start for collection of Marchamo

QCOSTARICA - The Instituto Nacional de Seguros (INS) -...

Costa Rica will suspend tariff benefits to Panama

QCOSTARICA - Costa Rica will suspend Panama's tariff benefits...

Ministry of Housing approves rent adjustment at 10.64% due to inflation

QCOSTARICA - Do you pay rent? Pay attention: the...

Vaccination against Covid-19 for children between 6 months and 5 years of age will start on Tuesday

QCOSTARICA - Pediatric vaccination against Covid-19 will start next...

Viaduct would be a definitive solution for Ruta 27 with serious sinking problem

QCOSTARICA - Kilometer 44 on the Ruta 27 has...

Diplomatic slip? President Chaves congratulates Italian political party

QCOSTARICA - Experts in international relations consider unconventional  Costa...

Dollar Exchange

¢624.62 Buy

¢632.72 Sell

30 September 2022 - At The Banks - BCCR

Paying the bills


QCOSTARICA – The potential development of the global income tax may lead to paying more tax as monthly income thresholds are lowered or exemptions reduced or eliminated.

It’s a complete change in the income tax scheme, according to Priscilla Piedra, partner at Deloitte.

An example of the change contained in the bill currently under discussion is reducing the monthly income to paying income tax is lowered from the current ¢842,000, where below that there is no income tax, to a monthly income of ¢683,334 colones (without expenses deductibles).

This is because the exempt amount would drop from ¢10.1 million annually to ¢8.2 million and those who exceed it would pay an initial income tax rate of 10%.

- Advertisement -

Without neglecting that, although the general business income tax rate would drop from 30% to 27.5%, for salaried and self-employed the maximum rate would increase from 25% to 27.5%.

Another controversial adjustment that the proposal would bring establishes that foreigners residing in the country pay passive income, that is, from investments, at the moment the resources enter the country, under the Dual Global Income Tax (Renta global dual).

Rafael Luna, a partner of Consortium Legal, told La Republica, he has yet to get an answer on that, explaining “it is like going to Japan, renting a car, committing an infraction and they take away my license here in Costa Rica”.

Proposed tax  on income

By standardizing the treatment between wage earners and independent professionals, once the liquid base is determined (the difference between the income received minus the authorized deductions), these rates will be applied:

  • Up to ¢5 million – 10%
  • Over ¢5 million and up to ¢12 million – 15%
  • Over ¢12 million to ¢19 million  – 20%
  • Over ¢19 million to ¢29 million – 25%
  • Over ¢29 million – 27.5%


- Advertisement -
Paying the bills
Avatar photo
Q Costa Rica
Reports by QCR staff

Related Articles

Costa Rica legislators reject global income tax

QCOSTARICA - The Treasury Affairs Legislative Committee rejected a global income...

President defends Global Income Tax

QCOSTARICA - President Rodrigo Chaves confirmed that the government will advance...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.