Fiscal Efficiency is Good For Everyone

The good functioning of the institution in charge of collecting taxes is vital for ensuring economic development, as it means that honest companies who comply with their fiscal obligations are not at a disadvantage to those who don't.

Monday, July 3, 2017


In Costa Rica, better administrative management has made possible better income tax collection figures than those foreseen with simple tax increases.

As outlined in an article on, it was due to administrative measures that revenue collected between 2010 and 2016 from income tax rose from 3.85 to 4.5% of production measured with gross domestic product.

Beyond any discussion about what the level of tax pressure should or should not be, the idea that this pressure should be exerted on everyone equally is essential, so that under conditions of free competition, those who produce more and better goods and services win, and not those with the best teams of accountants and lawyers.

More on this topic

Costa Rica is off the European Union Grey List

October 2019

Arguing that the country "fulfils all its commitments in terms of fiscal cooperation", the European Union decided to remove it from its list of nations and territories considered as non-cooperative.

Albania, Costa Rica, Mauritius, Serbia and Switzerland have implemented, ahead of schedule, all the reforms necessary to comply with the principles of good tax governance of the European Union (EU).

Panama on the Black List of the European Union

December 2017

After two years of negotiations the European Union has reached a consensus and defined a list of 17 nations considered to be "tax havens", among which is Panama.

For the first time, tax authorities in the European Union have announced the creation of a black list, composed of 17 countries considered "non-cooperative jurisdictions in fiscal matters".

Panama Gets Off List of Tax Havens

June 2017

Citing the country's progress in international cooperation in the fiscal area, the OECD has announced that it will not include Panama in the list of non-cooperating countries.

The decision was based on the progress made by Panama in the adaptation of its legislative framework, the expansion of partners for the exchange of tax information and the work carried out by the DGI to handle requests for information.

Agreement in the G20 Against Tax Avoidance

October 2015

The G20 finance ministers gave full support to the project that would prevent corporate profits from "disappearing" or being artificially transferred to jurisdictions with low or no taxation.

From the press release issued by the G-20:

During a meeting chaired by Turkish Deputy Prime Minister Cevdet Yilmaz, the G20 finance ministers expressed strong support for the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, which provides governments with solutions for closing the gaps in existing international rules that allow corporate profits to « disappear » or be artificially shifted to low/no tax environments, where little or no economic activity takes place.