The Ministry of Finance presented to the Legislative Assembly two new bills aimed at strengthening the management of tax benefits and increasing tax collection.
The first, entitled “Law on the Fiscal Benefits Regime and the Control of Tax Expenditure”, file No. 25,797, proposes establishing a new regime for the administration, monitoring and control of the exemptions granted in the country, including penalties for their misuse. Furthermore, it proposes eliminating certain exemptions related to tariffs, VAT, selective consumption tax and vehicle ownership tax, except for those exemptions that are explicitly maintained.
For its part, the project “Law on the tax on passive income from foreign sources and elimination of tax credits for the issuance of publicly offered securities themed”, file No. 25,796, proposes to incorporate into taxation certain passive income obtained abroad by residents in Costa Rica, including interest, dividends, royalties, rents, and capital gains.
This second initiative provides for a general rate of 15% for income subject to the project and would allow for the crediting of equivalent taxes paid or withheld abroad, with the aim of avoiding double taxation. Its scope would include natural and legal persons, as well as trusts, investment funds and other structures resident in the country.
Both initiatives must now continue their process before the Legislative Assembly, so the proposed amendments are not yet in effect.
For a detailed analysis of both projects, see Case 25.797: new tax benefits scheme y Case 25.796: passive income from abroad.