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Quick Updates on 2021 Taxes

Brackets on Wages tax, Income tax and Tax Credits were updated last December to become enforced in January 2021.The update is carried out through an adjustment of zero point twenty-eight percent (0.28%), currently being handled

Brackets on Wages tax, Income tax and Tax Credits were updated last December to become enforced in January 2021.

The update is carried out through an adjustment of zero point twenty-eight percent (0.28%), currently being handled the following way:

Tax on wages

  • Income of up to ¢ 842,000.00 (eight hundred forty-two thousand colones) per month will not be subject to tax.
  • A 10% will be paid to income higher than ¢842.000,00 (eight hundred forty-two thousand colones) and up to ¢ 1,236,000.00 (one million two hundred thirty-six thousand colones) per month.
  • A 15% will be paid to income higher than ¢1,236,000.00 (one million two hundred thirty-six thousand colones) and up to ¢2.169.000,00 (two million one hundred sixty-nine thousand colones) per month
  • A 20% will be paid to income higher than ¢2.169.000,00 (two million one hundred sixty-nine thousand colones) and up to ¢4,337,000.00 (four million three hundred thirty-seven thousand colones) per month.
  • A 25% will be paid to income higher than ¢4,337,000.00 (four million three hundred thirty-seven thousand colones) per month.

Tax credit on wages

  • One thousand five hundred seventy colones (¢ 1,570.00) for each child.
  • Two thousand three hundred seventy colones (¢ 2,370.00) for the spouse.

Income tax on corporations:

The following will apply to corporations whose gross income does not exceed the sum of one hundred nine million three hundred thirty-seven thousand colones (¢ 109,337,000.00) during the fiscal period:

  • Five percent (5%), on the first five million one hundred fifty-seven thousand colones (¢5,157,000.00) of annual net income.
  • Ten percent (10%), on the excess of five million one hundred fifty-seven thousand colones (¢5,157,000.00) and up to seven million seven hundred thirty-seven thousand colones (¢7,737,000.00) of net income
  • Fifteen percent (15%), on the excess of seven million seven hundred thirty-seven thousand colones (¢7,737,000.00) and up to ten million three hundred fifteen thousand colones (¢10,315,000.00) of annual net income.
  • Twenty percent (20%), on the excess of ten million three hundred fifteen thousand colones (¢10,315,000.00) of annual net income.

Income tax on individuals that perform lucrative activities:

  • Income of up to ¢3,742,000.00 (three million seven hundred forty-two thousand colones) per year will not be subject to tax.
  • A 10% will be paid on the excess of ¢3,742,000.00 (three million seven hundred forty-two thousand colones) and up to ¢5,589,000.00 (five million five hundred eighty-nine thousand colones) annually.
  • A 15% will be paid on the excess of ¢5,589,000.00 (five million five hundred eighty-nine thousand colones) and up to ¢9,322,000.00 (nine million three hundred twenty-two thousand colones) annually.
  • A 20% will be paid on the excess of ¢9,322,000.00 (nine million three hundred twenty-two thousand colones) annually and up to ¢18,683,000.00 (eighteen million six hundred eighty-three thousand colones) annually.
  • A 25% will be paid on the excess of ¢18,683,000.00 (eighteen million six hundred eighty-three thousand colones) annually.

Tax credit on individuals that perform lucrative activities:

  • Eighteen thousand eight hundred forty colones (¢18,840.00) per year for each child.
  • Twenty-eight thousand four hundred forty colones (¢28,440.00) per year for the spouse.

Don’t hesitate on contacting us if you need further assistance or information, our accounting team is available to guide you.

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salvarado@outlierlegal.com

Senior manager with more than ten years’ experience in regional roles coordination, global immigration, taxes, and corporate law. Has established two start-ups in the region while effectively leading teams to high success standards.

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2 COMMENTS
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    Deanne Tanksley January 18, 2021

    Are there any links to the forms on the website?

    • Stacey Jennings
      Stacey Jennings February 15, 2021

      no I am sorry there is not

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