Among the main reforms that the tax system is looking to simplify is the elimination of alternative income tax calculation.
The new income tax rate that will be applied has yet to be defined.
Prensa.com reflected the statements of the new Economy and Finance Minister, Alberto Vallarino: "I am a believer in low taxes because they help in collection, especially in countries where we do not have a culture of paying taxes, which is a reality not only in Panama, but in every Latin American country."
Alberto Vallarino, Finance Minister, is expected to present the tax reform today to the president’s cabinet.
The main objective of this project is to remove the Alternative Calculation for the Income Tax.
Newspaper La Estrella obtained a preliminary draft of the reform. It specifies that individuals earning up to $11.000 a year would be exempt from paying income tax, while those earning between $11.000 and $40.000 would pay 15%.
The President of Costa Rica, Oscar Arias, ruled out pushing through a tax reform in the last two years of his presidency.
The Government of Costa Rica had planned to collect an additional $700 million a year by making some modifications to sales and income taxes, by taxing limited liability companies and creating a tax for financial transactions.
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