New tax brackets for the new tax year
New brackets for calculating income tax for the next twelve months were implemented on Oct. 1, following their publication in the official newspaper La Gaceta.
As of Oct. 1, workers whose gross monthly income is less than ₡792,000 ($1,417) will be exempt from paying the tax. Last year that figure was ₡787,000 ($1,408).
Those earning a monthly income between ₡792,000 and ₡1,188,000 ($2,126) will be charged 10 percent.
People with a monthly income above ₡1,188,000 will pay 15 percent on the amount over that figure.
The Finance Ministry calculates yearly adjustments using variations of the consumer price index recorded in the twelve-month period before Oct. 1 as reported by the National Statistics and Census Institute. The variation in fiscal year 2016 was 0.6 percent, the Ministry reported.
Income for the purpose of this tax includes monthly base wages, bonuses and any extra salary perks, as well as all pensions.
Employers are responsible for withholding income tax for employees and paying the Finance Ministry no later than the 15th of each month.
You may be interested
Tico wins gold medal at Para Athletics Grand PrixAlejandro Zúñiga - May 24, 2019
When Sherman Güity lost part of his left leg after a traffic accident in 2017, he pledged to return to…
USNS Comfort mission to stop in Costa Rica this yearAlejandro Zúñiga - May 24, 2019
Costa Rica will receive the USNS Comfort, a United States Navy hospital ship, as part of the vessel's five-month medical…
Costa Rica announces drop in murders, increase in gun seizuresAFP - May 24, 2019
Costa Rica announced on Thursday a reduction in murders and an increase in the confiscation of illegal weapons as it…