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 Nacion.com 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."



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Costa Rica Mulls Eliminating 2% Retention from Tips

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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.

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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%. "