In recent weeks, the Ministry of Finance has begun to request from individuals detailed information on the origin of the funds held in bank and investment accounts abroad. Although it seems to be an audit, experts warn that it is rather a preventive signal that could lead to formal reviews if the answers are not satisfactory.
According to the article published by ICS Consultores, our tax system only taxes income generated in Costa Rica. In other words, the Treasury cannot assume that money deposited abroad by Costa Ricans or residents is automatically taxable in the country. It must first demonstrate that those funds originate from activities developed here.
The Tax Administration is asking taxpayers to justify that the income was generated outside Costa Rica and, in addition, to provide evidence that it was declared in the country where it arose.
Specialists recommend ordering documentation, requesting bank records and keeping clear backups, both for tax and asset security.
This is a news service prepared by ICS. For more information about the story, write to info@ics.cr or call 2519-9992 ICS, tax specialists.