Plans for Tax on Offshore Banking in Costa Rica

Using a levy on foreign banks the aim is to generate funds of up to $20 million in order to strengthen the Development Banking System.

Monday, July 8, 2013

According to the chief of the Ministry of Economy, Industry and Commerce (MEIC), Mayi Antillon, discussions have been initiated with the Ministry of Finance, to establish the parameters of the instrument. According to the official, the aim is to strengthen the capital of the National Development Trust (Finade), which provides an important share to the System.

For his part, Edgar Ayales, finance minister, said there is already a team which is takes stock of the situation, where the intention is that the project will not affect any of the parties, including the SBD or banks popularly known as "offshore banking". reports that: "offshore banks are those who are not registered with the Central Bank, and who do not pay tax and may be considered as unfair competition in the financial system."

Antillon added that with the new instrument, what is also being sought is to rebuild the portfolio which provides resources to the Development Banking System.

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More Hurdles for Development Banking in Costa Rica

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A reform of the Development Banking System is stuck in Congress because of an inevitable tax on offshore banking.

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