Authorities want to equalize rules for foreign banks

Costa Rica's Central Bank and its Finance Ministry intend to equalize tax conditions that apply to nationals who borrow from foreign banks.

Wednesday, April 23, 2008

Persons with loans owing to offshore banks (financial entities not domiciled in the country) do not currently pay the 15 per cent remission tax because these banks pay a special tax of 125,000 dollars.
That will change if a bill to amend the Law of Central Bank Capitalization is passed by the Legislative Assembly.
Banking authorities want to discourage offshore loans because they are beyond the supervision and control of the Central Bank. They also want all borrowers to operate under the same conditions.
"The idea is to level the playing field," said Central Bank President Francisco Gutiérrez.

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