Costa Rica: Taxes on Stock Investments Questioned

A 15% tax, charged by the Treasury on income from interest generated on foreign investments in securities in the local market, has been described as incorrect.

Friday, February 24, 2017

A ruling by the Attorney General of the Republic indicates the charge of 15% by the Treasury on  interest earned by foreigners on their investments in securities in the local stock market is incorrect and it should be 8%, as is charged to local investors.

Nacion.com reports that "...The Treasury issued a directive in 2015, which established a retention rate of 15% for interest or financial gains made by foreign investors who do not live in Costa Rica. The Treasury based its decision on the amendment to the Development Banking System Law which taxed so called 'briefcase banking'.  However, the Attorney stated that the charge applies to institutions under the supervision of the Superintendent of Financial Institutions (SUGEF) and not those supervised by the General Superintendency of Securities (Sugeval)."

"... The Sugeval said on Wednesday, in a significant event notice, that it asked the Ministry of Finance to report on the actions to be implemented by the Treasury after the ruling from the PGR. The Treasury department requested more time from the Superintendency to make a pronouncement on this issue."


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