New Income Tax Tranches

In Costa Rica, modifications to the salary tax brackets establish that income of up to $1,394 will be exempt from collection of the tax, and those exceeding $1,394 and up to $2,046 will pay 10%.

Thursday, June 27, 2019

On June 25, the Ministry of Finance published in La Gaceta the new income tax brackets to be applied to salaries between July 1 and September 30, 2019.

The publication details that the tranches will remain like this:

"a) Income up to ¢ 817,000.00 ($1,394) per month will not be subject to tax.

b) On the excess of ¢ 817,000.00 ($1,394) per month and up to ¢1,199,000.00 ($1,394) per month, ten percent (10%) shall be paid.

c) On the excess of ¢1,199,000.00 ($1,394) monthly and up to ¢2,103,000.00 ($3,589) monthly, fifteen percent (15%) shall be paid.

d) On the excess of ¢2,103,000.00 ($3,589) per month, and up to ¢4,205,000.00 ($7,176) per month, twenty percent (20%) shall be paid.

e) On the excess of ¢4.205.000,00 ($7.176) per month, twenty-five percent (25%) shall be paid.

After the period for which these modifications were fixed expires, a new table will be published that will apply for the next 15 months beginning October 1 of this year.

See full publication in scope number 143 of La Gaceta.

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