Costa Rica: Single Tax of 15% on Financial Income

If the Treasury's proposal succeeds, interest on bank deposits would incur 8% to 15%, while for revenues generated by mutual funds, the tax would rise from 5% to 15%.

Thursday, March 19, 2015

This unification is due to the fact that currently there are different taxes for similar types of income, therefore the tax is not neutral, according to the CEO of Taxation. In the case of surplus cooperatives and solidarity associations, the project proposes "... Keeping the current tax of 5% for amounts of income less than minimum wage exempt from tax. "

Anabelle Ortega, executive director of the Chamber of Banks, told that "... We are concerned that the increase on income tax on investment certificates from the current 8% to 15% may discourage savers, which would undermine savings and investment. "

For his part, the director general of taxation, Carlos Vargas, added "... When you set
different rates for revenues that come from similar sources what it does is establish the conditions for arbitration in favor or against. The logic is globalizing, via the rate, establishing the same rate for all the different income of that nature, which is 15%. "

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