On 20 March 2020, the National Assembly approved a bill to address the fiscal impact of coronavirus (COVID-19) in Costa Rica. Under the bill, taxpayers would not be required to make advance payments of income tax during the months of April, May, and June 2020. The amounts of the taxes corresponding to that period will have to be paid by the taxpayers before December 31, without interest or fines. This relief, however, would not be available for taxpayers that are required to pay their annual income tax “liquidation” during these months.
Regarding VAT and selective consumption taxes, the tax relief applies for tax payments due in April, May, and June If the amount of tax reported for these months is fully paid by December 31, 2020 (regardless of whether it is paid in a single payment or in installments), no interest or late payment penalties will be applied. In addition, for the months of April, May and June 2020 there is an exemption from VAT for commercial rental contracts if both the lessee and the lessor are registered in the taxpayer registry.
