Wednesday 27 September 2023

These are the new reforms of the Simplified Tax Regime in Costa Rica

Reforms to the Simplified Tax Regime will come into force as of next March 1.

Paying the bills


Costa Rica declares a state of emergency due to ‘migration crisis’ and prepares deportations

QCOSTARICA -- Costa Rica's migration crisis got out of...

Costa Rica’s economy would be the third with the highest growth in Latin America in 2023

QCOSTARICA -- Projections from the United Nations Economic Commission...

Small business start-ups- Drivers of a vibrant economy

QBLOG -- Job creation in any economy is led...

How much you will save at the end of the year with the Marchamo?

QCOSTARICA -- The reduction in the amount of the...

Misleading: El Salvador President Nayib Bukele “put an end to the gangs and terrorists”?

Q24N (VOA) On the social network X (formerly Twitter)...

“Liar”, “corrupt”: Words Ticos associate with Chaves

QCOSTARICA (Crhoy) Since Rodrigo Chaves Robles took office in...

Dollar Exchange

¢532.11 BUY

¢536.63 SELL

27 September 2023 - At The Banks - Source: BCCR

Paying the bills


QCOSTARICA – On March 1, 2023, the new reforms to the Simplified Taxation Regime of Income Tax will come into force. This was announced by the Ministerio de Hacienda (Ministry of Finance) through a publication in the official newspaper La Gaceta on February 2.

Reforms to the Simplified Tax Regime will come into force as of next March 1.

Alberto Porras, managing partner of the firm Baker Tilly Costa Rica, explained that these reforms are given through executive decree No. 43881-H. In it, adds the specialist, the requirements for the entry of taxpayers to the Simplified Tax Regime are regulated. In addition, he specifies the calculation of the tax to be paid and the dates of presentation of the declarations.

Porras also commented that among the main changes presented by this Regime are the requirements that taxpayers must meet. The first change is in the maximum amount of taxpayers’ annual purchases to remain in this Regime. This went from 150 base salaries (¢69,330,000 colones) to 186 base salaries (¢85,969,200 colones), including the Value Added Tax (VAT).

- Advertisement -

“This means that people or taxpayers who were very close to amounts of ¢69 million in annual purchases, approximately, when this section is increased, can exceed that amount and remain in the Simplified Tax Regime without problem,” said Porras.

Another important reform, he added, is that the Ministry of Finance expanded the activities that can belong to this type of Regime. This means that many taxpayers who are currently in the Utilities Regime or, as it is popularly known, the Traditional Regime, can emigrate and transfer to the Simplified Regime, “as long as they comply with the characteristics of this type of Regime. Within this are criteria such as the number of employees, maximum assets, maximum purchases, among others,” said Porras.

Among the new activities included in the Simplified Tax Regime are:

d) Preparation and sale of all kinds of confectionery and pastry;

g) Ornamental plant nurseries, succulents, garden plants and terrarium production, except for the production of seedlings;

k) Elaboration of all kinds of jewelry; as well as its repair;

- Advertisement -

l) Elaboration of crafts and works of art, as well as their restoration;

n) Manufacture of textile products for people, as well as their repair;

o) Manufacture of textile products and accessories for pets, as well as their repair;

r) Serigraphy services;

- Advertisement -

s) Sublimation services.

Also, the cap on the maximum individual sale value of any unit of alcoholic beverage that exceeds 1% of the base salary is eliminated.

In the same way, with these reforms, the inclusion in the Simplified Regime is allowed for activities originating from the exploitation of a franchise, brand, trade name.

“It is important to remember that the taxpayer of the Simplified Tax Regime is not obliged to issue an electronic invoice; however, he may opt, voluntarily and exclusively, for the issuance of electronic receipts, using for this the figure of non-confirming receiver issuer,” said Porras.

To know the complete list of economic activities, such as the requirements and maximum amounts, those interested can find it in the executive decree Simplified Taxation Regime No. 43881-H at the link: /2023/02/02/COMP_02_02_2023.pdf.

“What the Tax Administration is doing is expanding the requirements of this Regime a little more so that more taxpayers can enter it,” concluded the managing partner of Baker Tilly Costa Rica.


- Advertisement -
Paying the bills
Avatar photo
"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

Reduction in Marchamo has green light

QCOSTARICA -- The government of Rodrigo Chaves finally gave in with...

Goverment’s proposed reduction of Marchamo differs significantly from the stance of the opposition

QCOSTAIRCA -- The discussion concerning the decrease of the 2024 Marchamo...

Subscribe to our stories

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

%d bloggers like this: