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."

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More Hurdles for Development Banking in Costa Rica

February 2014

A reform of the Development Banking System is stuck in Congress because of an inevitable tax on offshore banking.

The creation of a tax included in the bill to reform the Banking Development System is impeding its progress in the Costa Rican Congress. MEPs propose a tax of 15% on profits from offshore banking.

Chamber of Commerce Against Tax Reform

November 2011

According to the Costa Rican Chamber of Commerce goods and services and therefore consumers will be the biggest losers if the tax reform is approved.

A press release from the Chamber of Commerce of Costa Rica reads:

Goods and services in our country, and therefore consumers, will be the biggest losers if the Solidarity Tax Bill is approved, due to fixation of new value-added tax, which will increase prices.

Increasing Criticism to Tax Plan in Costa Rica

October 2011

Unions and business associations are insisting that the economy will be damaged if the proposed tax reform is approved by the Executive.

The private sector is objecting to the negative impact that the reform will have on the national productive apparatus and consumers. Unions for their part say the new tax (Value Added Tax, VAT) will affect the finances of Costa Rican families.

Assembly Passes More Funds for Costa Rican Fire-fighters

August 2011

Electricity consumption of over 100 kW will be incur a tax of 1.75%, which will be go towards financing the operations of the Fire Department.

The annual amount raised would be about $15 million, which would be invested in the construction of 30 stations in towns that currently lack them.

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