Businessmen Oppose 1.5% Income Tax

Businessmen in Costa Rica criticized the proposal which taxes 1.5% of gross income per quarter.

Monday, February 28, 2011

According to the proposed fiscal plan, this levy would replace the current partial payments made by companies for income tax, but if at the end of the fiscal year if the amount to be paid in income taxes (profit) is less than 1.5 %, no return may be requested.

Only those companies which suffer losses as a result of the new tax payment may request a tax return, explained Nacion.com.

In this regard, businesses have criticized that "the tax will affect the cash flow of businesses, especially small and medium-sized ones". In particular, the Chamber of Gas Stations asked to be excluded from the tax, arguing that it "not only absorbs the net profits, but it is 50% more than the income of an average station."

More on this topic

Costa Rica: Single Tax of 15% on Financial Income

March 2015

If the Treasury's proposal succeeds, interest on bank deposits would incur 8% to 15%, while for revenues generated by mutual funds, the tax would rise from 5% to 15%.

This unification is due to the fact that currently there are different taxes for similar types of income, therefore the tax is not neutral, according to the CEO of Taxation.

Employers: NO to Tax Evasion

August 2014

The business sector of Costa Rica agrees with the content of the draft law proposed by the executive branch to combat tax evasion, but points to gaps in the text.

The lack of "... clear measures on how to combat informality" is one of the shortcomings of the initiative, according to Alan Saborio, coordinator of the Tax Commission of the Costa Rican Union of Chambers and Associations of Private Enterprise (Uccaep).

Costa Rica: Details of Anti Tax Evasion Bill

August 2014

Limiting the deduction of interest from income tax and eliminating the exemption from payment of 15% for dividend distribution between companies are part of the changes included in the project.

The Bill to Improve Anti-Tax Fraud, presented by the Ministry of Finance amends various tax issues that must be taken into consideration by companies operating under Costa Rican law.

Costa Rica: Banks to Retain 2% of Card Payments

August 2014

Businesses will receive 2% less from the banks for payments made by customers using credit and debit cards, by way of advance payment of income tax.

A decision by the Directorate General of Taxation, published in La Gaceta says that banks must start making a deduction of 2% of the amount which corresponds to the business on card payments received from October 1.

 close (x)

Receive more news about Taxes

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Luxury beachfront house for sale in Costa Rica

9 Bedroom residence in beachfront community, Hermosa Palms, only 14 minutes away from Jaco beach, Central Pacific.
9 BDRM $1.59 Million in Costa Rica Central Pacific's...

Stock Indexes

(Mar 23)
Dow Jones
-0.02%
S&P 500
-0.11%
Nasdaq
-0.07%

Commodities

(Mar 23)
Brent Crude Oil
50.61
Coffee "C"
142.90
Gold
1,245
Silver
17.561