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Taxes

Moratorium or Suspension of the Payment of Municipal Patents
BusinessEconomyPropertyTaxes

On May 20th, 2020, Mr. Carlos Alvarado, President of Costa Rica, signed a Law that seeks to alleviate local taxpayers as well as the financial management of the municipalities affected by Covid-19. It is a law that gives taxpayers the ability to request an extension on the term to pay

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BusinessTaxes

Watching movies through Netflix just got more expensive, at least for people who are domiciled in Costa Rica and/or use a Costa Rican card to pay for these type of services.  Starting on August 1, the collection of 13% value added tax (VAT) for cross-border digital services will begin, in

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should i dissolve my corp
BusinessCorporationsTaxes

A corporation is an agreement or contract made by nationals or foreigners through which they mutually commit themselves to contribute capital (money, goods, etc.) in general to create a business. While it is true, it is not the only reason why people create a corporation, we must determine when it is necessary

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municipal-property-taxes-how-to-calculate-them:
PropertyReal EstateTaxes

We all want to have the property of our dreams: Excellent location, with comfort, quality and at a good price. We strive to take care of it, prune the garden, clean it and keep the roof in good condition, among other things; however, those are not the only tasks that

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Several bills are being discussed by the Costa Rican senators right now which are looking to suspend or reduce the municipal property tax collections, as part of the measures to help those affected by the sanitary emergency of the new coronavirus. Some of these bills propose to allow taxpayers to access a moratorium, or a decrease from 25% and up to 50% in taxes, fees, services, and other municipal charges. The legislator María José Corrales, for instance, proposes that such reduction of 50% in the taxes collected by the municipalities, should apply to those quarters of 2020 that will be defined by municipal agreement, only to benefit those taxpayers who are up to date with their municipal property taxes, and that should be granted to periods that have not been endorsed by the union of local governments. Moreover, as also proposed by that same bill, a total or partial remission of the surcharges, interest, fines, and other charges for penalties owed in municipal charges should be granted. Such a measure would apply in the period from the first quarter of 2020 to the closing of the second quarter of the current year. And in order to be eligible for special reduction or tax condonation benefits, the taxpayer must be subscribed to a commercial license and should be up to date with the payments corresponding to the last quarter of 2019. On the other hand, this past Tuesday March 31st, a bill was introduced by the senators which proposes that the municipalities grant a moratorium, which would allow to transfer the dates of tax payments until April 2021. This would, help as these senators mentioned, “to guarantee that workers, entrepreneurs, and merchants, in their communities, have options that would allow them to face their commitments to the municipality”. In addition, the National Union of Local Governments (UNGL), which is the organization that represents municipalities as a group, announced that they will also present their own proposal on the matter. As informed by them, “they have tried to agree with the entire municipal system on a bill that tries to specifically benefit the taxpayer, through direct benefits that they could receive in terms of permits, licenses, and the different contributions that they carry out with each one of the local governments”. According to the UNGL, for them the most important thing is not to affect some of the essential services such as waste collection, safety issues, water, track cleaning, and additional services. For now, as mentioned, all of these options are being discussed, so we would need to wait and see what is the final decision on the matter.
PropertyReal EstateTaxes

Several bills are being discussed by the Costa Rican senators right now which are looking to suspend or reduce the municipal property tax collections, as part of the measures to help those affected by the sanitary emergency of the new coronavirus. Some of these bills propose to allow taxpayers to access a moratorium, or a decrease from

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tax relief costa rica
BusinessGovernmentTaxes

According to the latest guidelines promulgated by the Government, the Tax relief measures will be applicable to: a) VAT taxpayers, meaning people who sell assets or services. This includes: importers, exporters, and people subject to the simplified regime, as well as those who sell exempt assets or services. b) Taxpayer of the selective consumption

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Registry of Transparency and Final Beneficiaries 2020 update
BusinessGovernmentTaxes

Per Resolution N° DGT-ICD-R-06-2020 published March 30, 2020, all corporations will now have until September 2020 to comply with the yearly RTFB.  But this is not the only change to the mandatory requirement, please keep reading: Ordinary declaration (yearly):  The obliged corporations will have 6 additional months to comply with the 2020 period (April to September 2020). This requirement will now

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About the Solidarity Tax
BusinessGovernmentTaxes

This afternoon, the Costa Rican government proposed applying a “solidarity tax.” The President of the Republic, Carlos Alvarado, commented that other measures and resources available to the government will be exhausted first, so the measure would be implemented only “if necessary.” Under the proposal, a mandatory contribution would be imposed

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tax relief costa rica covid
BusinessGovernmentTaxes

Costa Rican Congress is expecting to pass the bill 21.845, named “Tax Relief Law Due to COVID-19,” to establish a moratorium on payment of taxes for corporations as a result of the health crisis. With this proposal, the government is looking to ease the tax burden on taxpayers. Among the measures,

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COVID-19-COSTA-RICA
BusinessGovernmentHealth CareTaxes

Costa Rica is preparing economic measures to protect workers and companies facing the COVID-19 impact. Carlos Alvarado said that “the objective of this first phase of care and financial support measures is to relieve those small and medium-sized entrepreneurs and to protect working people, who are affected by the impact

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