Tel: 506-2222-1722
 
Toll free from Canada & USA: 1-877-822-4768
 
Fax: 506-2233-1152
Email: grupocasacanada@gmail.com
 
 
 
Website: www.casacanada.cr

Other Taxes

tax-planning-reliance-trust

OTHER TAXES.

Casa Canada provides services for the calculation and payment of all types of tax in Costa Rica. For luxury tax, our experts can calculate the tax from the complicated government formula and tell you if you must register with the government or not. Casa Canada staff will ensure you pay the least tax possible within the law.

WITHHOLDING TAX

These taxes are payable at source in Costa Rica on earnings by non-residents of Costa Rica.

  1. Dividends – 15%. May be partially exempt if the dividend is taxable in the country of residence. They are not taxable to Costa Rican corporations.
  2. Interest income – 10%. Not applicable to banks or financial institutions recognized by the Central Bank of Costa Rica, as it is included in the interest rate offered, or to suppliers of merchandise. It is not taxable to Costa Rican Corporations. The borrower is responsible to ensure withholding tax is paid where required.
  3. Interest income- 25%
  4. Technical services & management fees – 25%
  5. Transportation & Communication Services – 3%

EDUCATION TAX

Education Tax is paid by all commercial companies and subsidiaries of foreign companies registered in Costa Rica. This annual tax, payable in February and March, is based on the net capital reported in the latest income tax declaration in colons.

The conversion to US dollars is calculated from the exchange rate on January 26, 2016

1 US$=¢ 529.89

 

FROMTOAMOUNT COLONSAMOUNT $US
0250,0007501.42
250,0011,000,0003,0005.66
1,000,0012,000,0006,00011.32
2,000,001Upward9,00016.98

LUXURY TAX

This is a tax on properties over a calculated value, the proceeds of which are to be used for subsidized housing for the poor. Casa Canada can help with your calculations to determine whether or not you must pay this tax. Be cautious where you get your evaluation done – the formula is very complicated and if the government receives a wrong evaluation, you are in their system and it is all but impossible to have your property removed.

The valuations can change, but for January 1, 2016 the exemption from the tax was based on a construction value of in excess of ¢126 million, or $236,868.82. One cent over this amount and the property is taxable. Once it is deemed taxable, a calculation for tax purposes is made on the value of the land. This is not cost, it is a government valuation per square meter that often has little to do with reality. There is a government table for each area in the country.

Once the land value is determined, the amount is added to the value of the construction. A tax percentage is then used to calculate tax payable. The percentage increases as the value of the property increases as per the following table. Total values are in colons. The value in dollars fluctuates daily.

 

FROMTO% FOR TAX
0315,000,000.000.25
315,000,000.01632,000,000.000.30
632,000,000.01946,000,000.000.35
946,000,000.011,263,000,000.000.40
1,263,000,000.011,578,000,000.000.45
1,578,000,000.011,896,000,000.000.50
1.896,000,000.01Upwards0.55

CORPORATION TAX

This tax was found to be unconstitutional in some areas in 2014, however the court said that the tax must be paid anyway in 2015. As of the early part of 2016 the tax no longer was being collected, however it is expected that the government will enact legislation to bring the tax bill into line with the constitution.

Small businesses called “Pymies” which have full-time employees can apply for exemption from corporation tax. They must pay the full tax for the first year, but after one year’s corporate income tax filing they can be declared exempt from corporate tax.

Proposed Corporation Tax

Corporation TypeAnnual Tax (2016)
Inactive63,600
Active with gross income up to ₡50,880,000106,000
Active with gross income between ₡50,880,000 – ₡118,720,000127,000
Active with gross income over ₡118,720,000212,000

For more information on all taxes in Costa Rica contact Casa Canada