The new tax reform proposal presented by the Ministry of Finance of Costa Rica includes the creation of a global income system to impose and collect a tax on the profits of companies and individuals.
Taxing all of the profits of natural and legal persons, including those currently paid separately by the identity code income method, is the principal new feature of the new tax reform plan presented by the Ministry of Finance.
In order to facilitate the formalization of more companies, in Costa Rica the private sector has proposed to the government the implementation of a fiscal amnesty exclusively for the informal sector.
The regulation that grants tax benefits on imports of electric cars has come into force in Costa Rica, and according to agencies it will help final prices to fall between $5 thousand and $10 thousand per unit.
The regulation that will allow the entry into force of the law was published in La Gaceta, and will enable electric vehicles that have been held in Costa Rican customs offices to be released.
At the end of the first four months of the year, the Central Government's financial deficit reached 1.9% of GDP, explained by the almost 8% growth in accumulated expenses.
In a statement the Ministry of Finance reported that "... At the end of the first four months of the year, the Central Government's financial deficit reached ¢670,560.0 million, representing 1.9% of GDP, a percentage higher than that presented in the same period in 2017 (1.8%).In this period total accumulated revenues showed growth of 3.8% with respect to the same months in 2017, while accumulated expenses increased by 7.6%.
The union of tourist businesses is asking the new government to repeal the decree that increases by $1 the amount that each person must pay when entering or leaving the country.
The National Chamber of Tourism argues that in regards to the new charge of $1 "... it is opposed to this guideline, considering it a double charge that would be made by two dependencies of the Ministry of Agriculture and Livestock, for the same service."
Although the Central Bank has not yet defined the date on which companies must present information, the new regulation on transparency and final beneficiaries registration has already been published.
The regulation was published at the end of April in the official newspaper La Gaceta, and details which entities are obliged to provide information regarding the substantive and final beneficiary interests, established in the Law to Improve the Fight Against Tax Fraud.
The predictive model designed with data mining techniques used by the Ministry of Finance in Costa Rica has detected payments to third parties totalling more than $31 million.
By cross matching information from the 132 databases available to the Ministry of Finance, the Tax Intelligence Office is trying to predict which companies are more likely to evadetaxpayments, depending on their historical behavior measured through transactions, tax returns and other data. By linking together all of the information, they are identifying patterns of behavior similar to those of other companies that have evaded taxes in the past.
Clarifying that this is not an evaluation of the country's public finances, the Fiscal Affairs Committee issued a favorable opinion on Costa Rica's ability and willingness to comply with the organization's standards in tax matters.
Between September and November of this year all companies in Costa Rica must start using the electronic invoicing system.
Those currently obliged to use the electronic billing and receipt system are companies and service providers in the sectors of health, accounting, legal, and from Monday April 2, joining them are taxpayers working in the fields of engineering, architecture and computer science and in Mayother activities such as geologists, geographers, biologists, and advertising services, among others. This obligation remains, it will not be affected by the new resolution.
Agricultural machinery and equipment, retreads and tires for machinery could be exempt from 13% VAT, if the substitute text of tax reform that is being discussed in the Legislative Assembly is approved.
The same exoneration would apply to books in all their formats, which in the original bill presented by the government had a differentiated rate of 4%.
Companies that operate under the free zone regime will be included in the list of companies required to use the electronic invoicing and receipt system, starting this year.
Authorities at the Ministry of Finance stated that in the coming days they will be make public a resolution with the inclusion of all taxpayers who until now have not been obliged to issue invoices electronically.
A bill that is being discussed in the Legislative Assembly proposes establishing a tax of 5% on the net sale price of imported or locally produced cement.
The bill establishes that "...the tax on cement produced within the national territory or imported, will be of five percent (5%) on the net sale price, both in the case of the national producer at the level of the production plantand for the importer at the level of the dispatch or storage site, excluding the corresponding sales or value-added tax, as well as any other tax".
The Costa Rican Congress has approved a fast track bill that would transform sales tax into a VAT of 13% and establish a 4% rate on the purchase of packaging, wrapping and raw materials, among other things.
The bill that could be approved by the Legislative Assembly also includes "... taxes on books in all their formats, air tickets, purchase of packaging and raw materials, as well as equipment and machinery (except if there is an express exoneration) and services for agricultural and agroindustrial production."
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