New Insurance Tax

Costa Rica is discussing a bill that proposes to charge an additional 0.5% on all premiums and prohibits deducting from income tax the 4% collected to finance the Fire Brigade.

Wednesday, May 15, 2019

For the directors of the Association of Private Insurers (AAP), the approval of the National Statistical System Bill, which is being discussed in the country's Congress, would put companies in trouble and cause a contraction in growth.

See "Outlook for the Insurance Market

Norma Montero, executive director of the APP, told that "... they are concerned about the decision of the deputies to include in the bill the collection of an additional 0.5% on all insurance premiums to finance the National Institute of Statistics and Censuses (INEC). But what most worries private insurers is not allowing them to deduct from income tax payment the 4% that is charged on premiums to finance the Fire Brigade.

You may be interested in "Insurance Market: Figures in 2018

As part of the discussion of the bill, the Legislative Assembly asked the General Superintendence of Insurance (Sugese) to give its opinion on the proposal, and the institution warned that this could have dangerous consequences, since they would make premiums more expensive and fewer citizens could purchase insurance.

The article states that "... Sugese asked legislators that surcharges of 4% for firefighters and 0.5% for the INEC, not be counted as income of insurance companies, but that these become mere collectors.

Regarding the insurance market figures, it was reported that in 2018 the country accumulated $1.261 million in 2018, 3% more than in 2017.

See articles: "Private insurers warn: Project would frighten new investments" and "Superintendence warns about dangerous consequences if they approve new Project".

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