Costa Rica: "Mandatory" Tip Increases Costs

The Chamber of Hotels & Restaurants is continuing its attempt to eliminate the mandatory gratuity on bills.

Wednesday, May 11, 2011

The tax, equivalent to 10% of the invoiced amount for food and accommodation services in restaurants and hotels and referred to as a tip, is income that should be distributed among employees. However, many operators do not pass the money on to their staff.

Representatives in the Chamber claim that this generates additional costs as it significantly increases the operating costs of the business.

A report in InsideCostaRica notes: The struggle by the Chamber to eliminate the tax is not necessarily because they want to eliminate the tax, but more so that employers use these resources responsibly and according to the regulations.

More on this topic

Nicaragua: Tips Can Be Suggested on Bills

October 2013

Without contradicting the provisions of law which state that tipping must be voluntary, the regulation approves phrases which suggest the possibility of the amount which can be paid and including it in the bill.

This is how it is described in the regulation of the Law on protection of the rights of consumers and users, published last week in the newspaper La Gaceta.

Nicaragua: Tips Should Be Voluntary

August 2013

The business community believes that tips in restaurants and hotels should be voluntary and not included on bills.

The president of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri and Eduardo Fonseca, executive director of the Chamber of Commerce of Nicaragua (Caconic) agree on the matter.

More and More Places to Eat in Costa Rica

August 2013

In the last two years the supply of fast food restaurants has doubled, and now oversupply is being noticed in a decline in sales, which have fallen by 10%.

According to Manuel Burgos, president of the Costa Rican Chamber of Restaurants and Related Businesses (Cacore), with the opening of new shopping centers such as Lincoln Plaza in Moravia, Paseo Metrópoli, in Cartago, and Plaza Tempo, in Escazu, at least 80 restaurants of this type have opened.

Costa Rica: Tax Removed from Tips

December 2012

A law passed by Congress states that income from tips should not be considered as part of a salary, and therefore should not be subject to taxes.

An interpretive ruling of the Constitutional Chamber of Costa Rica had endorsed the view of the authorities of the Social Security Department, which includes tips in salaries on which social security contributions are calculated, both those paid by the employee and the employer.

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