Costa Rica: 2% Retention on Card Payments Postponed

The Ministry of Finance has postponed until December 1 the beggining of the 2% tax which will be retained by financial institutions on card transactions.

Thursday, October 16, 2014

The aim of this extension is to give banks more time to adapt their systems and make adjustments seeing as they are the entities that must make the retentions.

Deputy Minister of Finance, Fernando Rodriguez, told that "... it is already decided, we have even communicated it to the banking sector, to the Costa Rican Banking Association of Banks and the House this week, so that they, in turn, can notify their partners. "

"... When a person is pays with a card in a store, from the payment a 13% sales tax is deducted and from what is left 2% is subtracted as advance payment of tax on income, or 1.77% of the percentage of the total purchase amount."

More on this topic

Commission Regulation for Card Payments

January 2019

In Costa Rica, the Central Bank and the Commission to Promote Competition are proposed to set a single percentage in the commissions paid by businesses for accepting credit or debit cards.

Law 21.177, which aims to empower the government to regulate the commissions charged by financial institutions to businesses, was presented to the Legislative Assembly by several deputies.

Costa Rica: Credit Card Debt Grows 23%

October 2017

The number of cards in circulation grew by 9% between July 2016 and July this year, and the balance of debt increased by 23% in the same period.

From the quarterly report produced by the Ministry of Economy, Industry and Commerce:

San José, October 25, 2017. The latest quarterly study on credit and debit cards, carried out by the Ministry of Economy, Industry and Commerce (MEIC), through the Directorate of Economic and Market Research determined that there are 2,528,051 cards of which 32% correspond to additional cards, which are assigned to persons authorized by the holder, for example a relative or employee.

Costa Rica Mulls Eliminating 2% Retention from Tips

February 2015

The union of restaurants in the country argues that tipping does not count as part of their profits and are asking for them to be exempt from the 2% retained on card payments by way of advance payment of income.

At the moment the Ministry of Finance is evaluating the request by the Costa Rican Chamber of Restaurants, since according to representatives of this guild more is retained from them than from other stores.

Costa Rica: 2% Retention on transactions with credit cards

January 2015

An injunction which since November suspended retention of 2% as an advance payment for tax on card transactions, has been declaration void.

The General Department of Taxation, at the Ministry of Finance announced that the measure will be effective immediately. "... The retention will be applied on 88% of the amount of each transaction, so effectively the amount withheld is 1.78%. "