Costa Rica imposes new audited financial statement rules for large firms
On 15 February 2024, Costa Rica's Ministry of Finance published Resolution No. MH-DGT-RES-0002-2024 of 7 February 2024 in the Official Gazette. This resolution outlines new guidelines for submitting audited financial statements by taxpayers
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Costa Rica announces CIT brackets for 2024
On 7 December 2023, the Ministry of Finance of Costa Rica published Executive Decree No. 44276-H in the Official Gazette, outlining the corporate and individual income tax brackets and rates for 2024. The updated corporate income tax is set at
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Costa Rica: Menstrual hygiene products eligible for 1% reduced VAT rate
On 29 November 2023, Costa Rica passed Law No. 10424 of 29 November 2023. This legislation introduces measures regarding menstrual hygiene products. It includes the amendment of the basic basket of goods eligible for a reduced VAT rate of 1%, which
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Costa Rica: Legislative Assembly adopts a bill to introduce income tax law
On 18 May 2023, the Costa Rican National Legislative Assembly approved Bill No. 23760, which aims to introduce a new Income Tax Law. The bill proposes to repeal the existing corporate income tax law, Law No. 7092 of 1988. Instead, it suggests
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Costa Rica extends filing deadline for inactive entities
On 29 March 2023, Costa Rica issued Resolution No. MH-DGT-RES-007-2023 providing an extension of filing annual informative return for inactive entities. Usually, inactive entities are required to file their informative return by 30 April of each
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Costa Rica: Ministry of Finance issues decree setting the corporate tax brackets for 2023
On 23 December 2022, the Costa Rican Ministry of Finance published Executive Decree No.43852-H updating the individual and corporate income tax thresholds for 2023. Accordingly, companies whose gross income does not exceed the amount of
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Costa Rica extends the deadline for filing informative returns for dormant companies
On 9 November 2022, Costa Rica published the Resolution No.DGT-R-033-2022 regarding further extension of deadline for filing informative returns for dormant companies. This is the third extension of the filing deadline. Previously, it was extended
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Costa Rica: DGT extends the deadline for filing dormant entities tax returns
The General Directorate of Taxation has extended the deadline for filing income tax returns for dormant companies until 15 November 2022. A dormant company is considered a company that meets the conditions defined in Circular 2014/2. The return must
See MoreCosta Rica: Ministry of Finance reduces interest rate for late payments
On 24 June 2022, the Costa Rican Ministry of Finance has published the resolution RES-DGH-026-2022/RES-DGA-187-2022 providing to decrease the interest rate applicable on late payments of taxes, surcharges and penalties, and on tax refunds.
See MoreCosta Rica: Tax authority publishes new tax brackets for the year 2022
On 22 December 2021, the Costa Rican government and the Ministry of Finance posted a Decree No. 43375-H updating the corporate income tax thresholds for tax year 2022. The following corporate income tax rates will apply to the income of
See MoreCosta Rica gazettes resolution reducing interest rate for late tax payments and refunds
On 16 June 2021, the Costa Rican Ministry of Finance has published a Resolution RES-DGH-010-2021 and RES-DGA-222-2021 providing a reduction of interest rate from 10.31% to 10.20% for late tax payments and refunds of overpayments. The rate is
See MoreOECD welcomes Costa Rica as its 38th Member
On 15 May 2021, Costa Rica has formally become an OECD Member, the 38th country to do so in the Organisation’s 60-year history. Costa Rica’s accession, extending the OECD’s membership to 38 countries, will take effect after the country
See MoreCosta Rica extends the filing due date for ultimate beneficiary owner return
On 29 April 2021, Costa Rica published the Resolution No. DGT-ICD-R-17-2021 extending the due date for filing the ultimate beneficial owner return in the registry for the year 2021. Originally, the deadline to comply with this obligation was on
See MoreCosta Rica: Ministry of Finance issues resolution on APA procedures
On 24 March 2021, the Costa Rican Ministry of Finance released a Resolution No. DGT-R-14-2021, providing new guidelines on advance pricing agreements (APAs). The resolution provides the details guidelines of APAs procedures including definitions
See MoreCosta Rica: Legislative Assembly approves a bill to increase WHT rates
The Costa Rican Legislative Assembly has approved a bill considering to increase withholding tax rates on various types of income paid to non-residents by 5%. The bill provides the 20% withholding tax rates for dividends and interest, 30% for
See MoreCosta Rica publishes interest rate for late tax payments and refunds of overpayments
On 18 December 2020, Costa Rica's Ministry of Finance has published the Resolution DGH-054-2020 and DGA-542-2020 providing reduced the interest rate for late tax payments and refunds of overpayments to 10.31% (from 10.54%). The rate is based on the
See MoreCosta Rica: Ministry of Finance publishes new CIT rates for 2021
On 8 December 2020, the Costa Rican Ministry of Finance has published the Executive Decree No. 42733-H providing new corporate tax brackets for 2021. Decree No. 42733-H enters into force on 1 January 2021 and replaces the prior decree on rates
See MoreCosta Rica issues resolution on request for increased interest deduction limits
On October 15, 2020, Costa Rica published Resolution DGT-R-0032-2020, which outlines the application process for the taxpayer to increase the maximum deduction limit for net interest expense. The restriction on the deduction of interest expense was
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