Costa Rica: The income tax on foreigners investing in securities market is 8%
Foreign investors in Costa Rica will now have the same percentage as the revenue tax for local people. The Attorney General's office in Costa Rica confirmed that the withholding tax rate of 8% laid down in Article 23 of the Costa Rican Income Tax
See MoreCosta Rica updates the income tax clauses for tax year 2018
On 27 September 2017, Costa Rican government published the income tax brackets for tax year 2018. Tax brackets are adjusted yearly, effective 1 October to 30 September of the following year due to changes of consumer price index. For corporate
See MoreUAE: DTA signs with Costa Rica
The Minister of Foreign Affairs and Worship in Costa Rica, Manuel A. Gonzalez Sanz, has made a visit to attend a meeting at the ministry in capital San Jose and to meet with Assistant Minister of Foreign Affairs and International Cooperation for
See MoreCosta Rica : MoF increases the interest rate for late payments and refunds
The Ministry of Finance (MoF) has increased the interest rate for late advance tax payments and refunds of overpayments from 11.73% to 12.8%. The rate is effective from 1 October
See MoreCosta Rica: Tax administration temporarily suspends filing date for TP information return
The Costa Rican Tax Administration has temporarily suspended the filing date for the transfer pricing information return. On 5 June 2017 Resolution DGT-R-28-2017 was published in the Official Gazette to give effect to this measure. The resolution
See MoreCosta Rica signs OECD Multilateral Instrument
Costa Rica has signed the Multilateral Convention to implement tax treaty related measures to prevent Base Erosion and Profit Shifting ("Multilateral Instrument" or "MLI"). More than 68 countries, including Costa Rica, signed the Convention on 7
See MoreCosta Rica: Tax Authority issues transfer pricing guidelines
Costa Rican tax authority on 21 April 2017, issued Resolution DGT-R-16-2017 in relation to transfer pricing documentation guidelines. The Resolution establishes requirement of taxpayers having transactions with related parties to retain supporting
See MoreCosta Rica: Government publishes late payment and penalty interest rate for 2017
The Ministry of Finance published the Resolutions No. DGH-016-2017 and DGA-DGT-006-2017 in the Official Gazette on 27 March 2017. In accordance with Resolutions, an interest rate of 11.73% will be applied for late payment and refunds of taxes,
See MoreCosta Rica: Corporate flat tax re-entered into forced
Costa Rica has been updated the Law N° 9428 which previously declared unconstitutional due to the approval procedure inconsistencies. The Law provides the corporation flat tax which is establishes an applicable progressive rate. Thus, the tax
See MoreCosta Rica: Legislative Assembly approves the bill to restore registration flat tax
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
See MoreCosta Rica: Supreme Court issues base salary for 2017
The Supreme Court of Justice released Circular No.230-2016 on 10 January 2017 regarding base salary for 2017. According to the Circular, with effect from 1 January 2017 the base salary is CRC 426,200. The base salary is applicable to compute certain
See MoreCosta Rica: Legislative Assembly approves corporate flat tax
The National Legislative Assembly on 9 January 2017, approved the Bill no 19818 to retain the registration flat tax on companies. According to Bill, companies, as well as any branch of a company which are registered in the Register of Legal
See MoreTIEA between Costa Rica and Italy ratified
The Tax Exchange Information Agreement (TIEA) between Costa Rica and Italy has been ratified on 14th January 2017 by the Italian Council of Ministers through a draft law. It was signed on 27th May
See MoreCosta Rica: Government introduces law against tax fraud
Costa Rica enacted a law against tax fraud which was approved on 12 December 2016 and published in the Official Gazette on 20 December 2016. The new law is important for better administration and collection of taxes, and for combating tax
See MoreCosta Rica: A discussion draft published for comments on Transfer pricing documentation guidelines
The Costa Rican Ministry of Finance published a discussion draft on 12 December 2016 on a resolution regarding guidelines on transfer pricing documentation. The requirements under the guideline set out the operations of companies within the economic
See MoreCosta Rica and Ecuador: TIEA enters into force
On 17 September 2016, the tax information exchange agreement (TIEA) between Costa Rica and Ecuador entered into force, which requires the parties to exchange information that is relevant for the determination, assessment, collection and execution
See MoreCosta Rica: Resolution on transfer pricing return procedure entered into force
Costa Rican tax authority has Gazetted the resolution N ° DGT-R-44-2016 on September 13, 2016 that regulates the transfer pricing return in Costa Rica entered in force. With the publication of resolution N ° DGT-R-44-2016, technical and practical
See MoreCosta Rica: Tax authority finalize transfer pricing return procedures
Costa Rica has published a resolution in the official gazette to finalize the rules concerning the filing of an annual transfer pricing return for taxpayers qualifying as “large taxpayers” or as “national large companies” or operating under
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