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.
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.
Norma Montero, executive director of the APP, told Crhoy.com 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.”
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.
In Costa Rica a bill intends to discourage the use of "tax havens", controlling the legitimacy of the costs incurred in those territories.
At present the bill under discussion in the Committee on Financial Affairs, is expected to publicize a final report in mid-March. The initiative "... also excludes deductions for expenses to be made or paid by resident individuals or entities in tax havens."
Deducting interests on income tax and increasing the amount of capital required by the fiduciaries are part of the proposed changes.
The Superintendency of Banks of Panama (SBP) along with some trust companies are discussing a draft for a bill to amend Act 1 of January 5, 1984 so that it can comply with international standards.
Both sides are discussing three articles of the Tax Update Law, but so far have failed to reach an agreement.
According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), one of the items that is causing disagreement is related to the payment of income tax (ISR) on the tips received by service companies.
The Executive Branch of government has proposed a lengthy new income tax law.
Under the proposal, the changes to the income tax structure would affect the general income tax, optional taxes and local taxes. It would create levies on dividends from capital and new limits on deductible expenses.
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