The Ministry of Finance has announced that tour operators and travel agencies are not subject to the 2% deduction relating to advanced income tax payment on credit card transactions.
From a statement issued by the Presidency of the Republic of Costa Rica:
The Ministry of Finance today reported that at the request of the representatives of the tourism industry, the General Department of Taxation review the status of tour operators and travel agencies and exclude them from withholding money, on the grounds that these two activities in the tourism sector supported the request with their technical studies which were reviewed by the Tax Administration Office. This exclusion does not include the hotel industry.
An injunction which since November suspended retention of 2% as an advance payment for tax on card transactions, has been declaration void.
The General Department of Taxation, at the Ministry of Finance announced that the measure will be effective immediately. "... The retention will be applied on 88% of the amount of each transaction, so effectively the amount withheld is 1.78%. "
In order to encourage investment in the country, starting from this fiscal year income tax paid by taxpayers registered in the regime on profits will be reduced from 28% to 25%.
According to the latest amendment of the Law on Tax Update, Decree 10-2012, the rate of income tax (ISR) applied to taxpayers from 2015 will be 25%. The authorities clarified that the rate of 28% will be applied to taxpayers who have not yet completed the liquidation of 2014
Payment schedule for liabilities in January 2015 and Memorandum on Tax Bancarization.
Tax Memorandum
The requirement for Tax Bankarization is regulated by Articles 20 and 21 of Decree No. 20-2006, articles which were amended by Articles 27 and 28 of Decree No. 04-2012, specifically in order to change the amount of bankarization amount from $6,585 to $3,951
Schedule of payment of liabilities for December 2014 and Tax Memorandum on the new control department for exempt taxpayers.
Tax Memorandum
Department of Control for Exempt Taxpayers
The SAT is directly notifying taxpayers of the creation of a Department of Control for Exempt Taxpayers
The core of the notification indicates that:
"The Superintendency of Tax Administration has implemented a Control Department for Exempt Entities to provide in a comprehensive manner, service, control and monitoring of compliance with tax and customs obligations; and verify the proper use of the benefits of those entities that enjoy tax breaks of any kind.
The amendment to the Law on Tax Coalition sent by the Executive to the Assembly repeals the exemption from VAT on domestic production of clothing and footwear.
If the reform is approved, SMEs in these sectors will be the most affected "... as it states that they must pay Value Added Tax (VAT) and also orders that they withhold income tax, through an unclear mechanism within the fixed quota system. "
Congress has passed the elimination of the provision that payments be made by natural and legal persons when they are shareholders in corporate groups.
According to the liberal congresswoman Gabriela Núñez "... The law is properly applied to individuals who receive dividends as when they receive a profit they must pay their taxes; however, when it relates to a company it becomes a double taxation because the company, when it receives dividends, pays the tax and then when it distributes the dividends among its own shareholders, it once again incurs a tax liability of 10%, which is considered prohibited in the Tax Code. "
A bill that the government plans to introduce in the Assembly before the end of year includes transforming the sales tax and into a value added tax and gradually raising the rate from 13% to 15%.
This increase should be available within two years in order to "... stabilize the size of the gap between government debt and gross domestic product (GDP) from 2019 and safeguard macroeconomic stability. "
Bankers and businessmen are pressuring the government to remove the guideline which aims to retain 1.77% of each transaction as advance payment of income tax, scheduled to start on December 1.
The private sector argues that "...The decision of the Directorate General of Taxation (DGT) ignores the fact that neither card issuers nor financial institutions in the country can be considered as 'withholding agents' as this must be defined by the appropriate Act. "
The Ministry of Finance is working on a bill that aims to review and eliminate tax exemptions that have no substantiated legal justification, and create a new regulatory framework.
According to the Ministry of Finance, income not received in 2013 due to the existence of exemptions and special tax regimes was equivalent to 5.93% of GDP, of which 3.7% corresponds to the General Sales Tax, 1, 9% to income tax and 0.3% for other taxes.
Payment schedule of obligations corresponding to August 2014 and Memorandum on Tax Regulation on Occupational Health and Safety.
Tax Memorandum August 13th to 14th, 2014.
Regulation of Occupational Health and Safety
The Ministry of Labor and Social Welfare published in the official newspaper La Gaceta of August 11, 2014 Governmental Agreement No. 229-2014 through which issues the "Regulation of Occupational Health and Safety" must be observed by all employers. Its validity is from February 11, 2015, ie there are six months to implement the measures for occupational health and safety, required by this Regulation.
Limiting the deduction of interest from income tax and eliminating the exemption from payment of 15% for dividend distribution between companies are part of the changes included in the project.
The Bill to Improve Anti-Tax Fraud, presented by the Ministry of Finance amends various tax issues that must be taken into consideration by companies operating under Costa Rican law.
Calendar of payment obligations for July 2014 and Memorandum Tax on banking secrecy.
Tax Memorandum August 12nd - 14th 2014
Is bank secrecy is over?
All OECD countries as well as others such as Costa Rica have committed to the automatic exchange of tax information.
Because of the importance of this topic, the following is transcribed from a statement issued by the Organization for Economic Cooperation and Development (OECD):