Costa Rica: Legislative Assembly approves the bill to restore registration flat tax

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The Costa Rican Legislative Assembly on 17 March 2017 approved the bill which restores the registration flat tax on companies. The bill, which intends to restore the registration flat tax on companies, had been declared unconstitutional on 28 January 2015.

The registration flat tax remains an annual tax, but rates will be amended as follows:

  • Companies that do not file income tax returns will pay a tax resulting in 15% of the salary base
  • Companies whose gross income from the preceding year does not exceed 120 base salaries will pay a tax resulting in 25% of the salary base.
  • Companies whose gross income from the preceding year exceeds 120 salaries, but not more than 280 base salaries, will pay a tax resulting in 30% of the salary base.
  • Companies whose gross income from the preceding year exceeds 280 salaries will pay a tax resulting in 50% of the salary base.

For 2017, the base salary is CRC 426,200. The Bill becomes effective upon publication in the Official Gazette. Further details will be reported in due course.

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