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Taxes

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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Tax-Rates-for-Strengthening-Solidarity-Housing-Programs-(ISO)
GovernmentReal EstateTaxes

The solidarity tax, also known as the “tax on luxury homes,” was created by Law No. 8683 on November 19, 2008 and had been in effect since October 1, 2009. The official title of this tax is the Solidarity Tax to Strengthen Housing Programs. This tax was created to fund

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Tax-Return-on-Inactive-Corporations
BusinessCorporationsTaxes

Per Resolution Nº DGT-R-075-2019, published in La Gaceta on December 20th, 2019, the Ministerio de Hacienda has finally provided a resolution on how Inactive corporations are required to proceed regarding tax returns. See the information below for details. This Applies To: Inactive legal persons (corporations which do not perform profitably).

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GovernmentTaxes

The CR Congress approved a moratorium for the penalties to be imposed for non compliance with the new VAT imposed with the recent tax package. Please note that the moratorium is applicable only to the penalties to be imposed and the administrative proceedings (Proceedings by Hacienda against the business or

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TaxesTourismTravel

Two congress women put two separate bills in congress with the intention to charge additional taxes to tourist, as well as implementing other requirements.  One of the bills was brought by Shirley Díaz from the PUSC and the other by Paola Vega from PAC. The intention of the bills is

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