In Costa Rica an amendment to the regulations of the Free Trade Zone Law is under public consultation until November 25.
From a statement issued by PROCOMER:
In accordance with the provisions of articles 361 et seq. of the General Law of Public Administration, Law No. 6227 of May 2, 1978, in accordance with article 174 of the Code of Tax Rules and Procedures, Law No.
Expediting the process of land expropriation is vital in order to implement well and on time the works needed to overcome the terrible road infrastructure situation in Costa Rica.
This is the aim of the Ministry of Public Works in raising the issue of reform of the Expropriation Act, to reduce lengthy timeframes in the procedures for obtaining dominion over the land needed to build public infrastructure, and address a worse issue, the fact that there has never been any certainty over these deadlines, making projects notably more expensive.
While financial regulators want to increase the quality of banks' management with better qualified managers, a bill intends to reduce the demands of professionalism for a "popular" bank.
The intention of six members in reforming the Organic Law of the People's Bank (Banco Popular) and Community Development (BPCD) is to increase control of the union on the bank's management which is "...
Among the new features are VAT refunds to those who pay for private medical practices with cards and the establishment of a new fiscal year, from January 1 to December 31.
From a statement issued by the Ministry of Finance:
Bill on value added tax (VAT):
New Features
- This project establishes a value added tax (VAT) levied on sales of goods and provision of services in Costa Rica.
The Supreme Court has ruled to leave in place the veto of the Law known as the Labor Procedure Reform, which allowed strikes to be called on essential services such as ports, hospitals and public transportation.
From a statement issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
- Business Sector considers it to be a benefit to all Costa Ricans
Experts warn that the draft law which aims to raise income tax and convert sales tax into value added tax might not be approved for two years.
The lack of consensus between the Ministry of Finance and the President of the Republic, Luis Guillermo Solis, is sending mixed signals on some aspects of the tax reform. One example in the case of corporation tax, an issue that the president himself has stated he disagrees with.
The Ministry of Finance has announced the sending to the Legislative Assembly of a bill which eliminates 220 different tax exemptions.
The bill already has the signature of the president, Luis Guillermo Solis, and besides eliminating 220 tax breaks also establishes penalties for those who enjoy them without a right to do so.
If the Treasury's proposal succeeds, interest on bank deposits would incur 8% to 15%, while for revenues generated by mutual funds, the tax would rise from 5% to 15%.
This unification is due to the fact that currently there are different taxes for similar types of income, therefore the tax is not neutral, according to the CEO of Taxation. In the case of surplus cooperatives and solidarity associations, the project proposes "...
Requests have been made for the clarification of which telecommunications services are to be taxed with VAT, since it is unclear whether it is information services or telecommunications which would be taxed.
Currently telecommunications services are charged sales tax, even though the Costa Rican government aims to close the digital divide. With this new reform proposal, a Value Added Tax (VAT) of 15%, "would be incurred ...
Public consultation is being given to the draft reform proposed by the Ministry of Finance to the Law of General Sales Tax.
From a statement issued by the Ministry of Finance of Costa Rica:
• Proposal is available to read at www.hacienda.go.cr
The Ministry of Finance today made available to the public, a proposal for draft amendments to the Law on General Sales Tax Act and Income Tax, aiming to open up a space to receive observations and recommendations from the sectors and citizens interested in participating in this process, which is needed to strengthen public finances and achieve a National Agreement for Social Development.
The reform under public consultation includes tax on remittances sent abroad, on the payment or crediting of interest, commissions and other financial expenses by natural or legal persons domiciled in Costa Rica.
From the order by the Ministry of Finance published in La Gaceta:
Amendments to the Regulations on the Law on Income Tax
As part of a plan to reduce the fiscal deficit, the Finance Ministry is preparing a bill which aims to amend the existing tax exemptions scheme.
This project also seeks to create penalties for 1,259 misuse of tax breaks reported by the Technical Services Department up until 2014. It is anticipated that the initiative will be submitted to the Legislature in no more than two weeks.
The law reform which reduces the deadlines for the State to take possession of the goods necessary for the execution of public works has been published in the official newspaper La Gaceta.
After being passed by the Legislative Assembly last October, the Reformed Expropriation Act was finally published in the official newspaper La Gaceta and takes effect from today.
The Government has issued an Executive Order which details the services that will be defined and the procedure to be followed to ensure the continuity of their delivery of services to the population.
After the lifting of the veto of the Act amending the Labour Procedure Code, which enabled strikes in essential services, president Solis has issued a decree which will be in force until the aforementioned Reform Act comes into force in mid-2016.
Despite widespread opposition from all productive sectors in the country, President Solis has lifted the ban on reforms to the law on labor procedures imposed by the previous administration.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
Lifting of veto outrages and concerns business sector