Problems Ahead for Costa Rica Free Port Law

Three points exist that could complicate the approval of the Free Port law in the Costa Rican Congress.

Tuesday, July 7, 2009

Politicization of the benefited companies, creation of a fiscal paradise and transferring the favorable impact of investment to less developed areas are points doubted by several congressmen.

Journalist Rodolfo González writes in El Financiero's website:
"The project intends to put Costa Rica up to date with the demands of the World Trade Organization, specifically removing the export requirements for free port benefits and taxing 5% over income to manufacturing companies, which today enjoy tax exemptions. Additionally, offering tax benefits to companies considered as 'strategic sectors' for the country..."



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No Changes to be Made to Costa Rica's Free Zones

July 2015

Once again the Presidency has spoken out to calm investors denying the insinuations of a Deputy Minister related to opening up the discussion on the free trade zone regime.

According to an article in Crhoy.com, the Deputy Minister of Labour, Harold Villegas, mentioned in the framework of the International Forum of Social Solidarity Economy that "as a society we should discuss the activities that should or should not be tax-free and although free zones functioned well in a moment of history, it's time to move towards a system of greater tax justice and for a more open discussion to take place. "

Analysis of the Panamanian Law on Free Zones

September 2011

The goal of the new law is to provide optimal conditions for generating maximum efficiency and competitiveness.

In April this year a new law was approved governing the operation of free zones in the country, where many foreign companies have decided to settle because of the benefits the scheme provides.

Costa Rica: Modifications to Free Port Law Project

August 2009

Suppliers selling at least 40% of their production to free port companies will enjoy the benefits of the tax regime.

Previously, the benefits were granted to suppliers with "a significant portion", without establishing percentages, a far too wide concept.

"Free port companies currently don't pay any income taxes.

Costa Rica's Free Zones require definition of the system

November 2008

There is concern about the incentives to be received after 2015 when benefits expire according to World Commerce Organization provisions.

The Government wants to ensure these conditions through a reform of the free zone law aimed at attracting investment.

However, its early yet and the possibility of taking it to Congress for a vote seems far off.

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