Electric Cars: Tax Benefits Extended

In Costa Rica, the Ministry of Finance decided to extend the deadline by 24 additional months so that the import of hybrid and electric vehicles can be done at reduced rates and in some cases without paying taxes.

Friday, January 17, 2020

With the publication of decree 42080-H-MINAE-MOPT in the edition of the Official Journal of Thursday, January 16, 2020, the benefits will be maintained until December 2021. See full publication.

This extension in the validity of the tax benefits applied to imports of this type of units was granted, due to the fact that the amount of electric vehicles in the country is still low.

See "Electric Cars: Who Are the Potential Buyers?"

German Morales, managing partner of the accounting services firm Grant Thornton, explained that "... technologies do not change so quickly in one place and it is not so easy for Costa Rica to quickly have only 100% alternative energy vehicles. That's why the window for the industry is needed."

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Morales added that "... the two years will not be enough and should rather be maintained over time. It should reach a point where only electric vehicles are exempted, but it should be a 5-7-year period."

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