Costa Rica Announces Fiscal Reform Project

The project which will be presented to the National Assembly includes a Value Added Tax (VAT) of 15%.

Wednesday, December 1, 2010

This tax will replace the current sales tax.

The project was presented by the Finance Minister, Fernando Herrero, during an event at the Attorney Bar Association.

With regards to the VAT, the minister added that it is of special concern "... to include in the tax base professional services, health and private education, informs Elfinancierocr.com. “As for the income tax, the proposed tax reform proposes to tax interest, dividends, capital gains and rentals at a rate of 15% of the income."

More on this topic

New Changes to Costa Rica's Tax Reform Project

April 2011

Facing pressure from political parties and productive sectors, the government decided to change the project.

Modifications include a new set of basic products extent from value added taxes and changes to the "social economic" sector, which includes solidarity associations, cooperatives and the "Banco Popular".

Fiscal Reform in Costa Rica

January 2011

Summary of the legal tax reform aiming at increasing tax revenue by $ 1.000 million, or 2.5% of GDP.

The so-called Solidarity Tax Bill was presented yesterday to the Legislature by the Executive Branch.

The initiative seeks to increase tax revenues by 2.5% of gross domestic product (GDP) which, coupled with the implementation of measures to increase revenue and reduce spending, would balance the public budget.

Consultation on Tax Reform in Costa Rica

November 2010

The Finance Minister began talks with political groups trying to identify a project with as much support as possible prior to presentation.

Fernando Herrero, minister of finance, stated to Aaron Sequeira of Prensalibre.cr that the basics of the first draft of the proposed tax reform is progressiveness and simplicity, with the Value Added Tax (VAT) and Income Tax as the main sources of revenue.

Costa Rica: New Tax Reform Project

May 2010

The Treasury Ministry is working to integrate a number of existing ideas and proposals into a new tax reform project.

Fernando Herrero, the new Treasury Minister, explained they will review all the existing proposals, summarize them and use the result as the basis for a new bill.

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