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 implementing new provisions that broaden the scope of Costa Rican-source income. This expansion would encompass certain passive items, including capital income and capital gains earned by Costa Rican tax residents, regardless of their source location.
The proposed bill maintains a tax year aligned with the calendar year and introduces a uniform corporate income tax rate of 30% on net revenues obtained from all sources during the relevant tax year. This represents a departure from the current progressive rate system in effect. If the bill is enacted and officially published by the end of 2023, it will come into effect on 1 January 2024.
