• Costa Rica Real Estate

Finance Ministry updates income tax brackets, raises tax-exempt salary limit

October 27, 2014

Employees whose gross monthly income is less than ₡793,000 ($1,455) will be exempt from paying income tax, according to the latest update for the fiscal year 2015 approved by the Finance Ministry last week.

Finance Minister Helio Fallas on Friday signed a decree with the new income brackets, and President Luis Guillermo Solís is expected to sign it and send it for publication in the official newspaper La Gaceta this week.

The new tax provisions would cover income earned starting on Oct. 1. An income tax of 10 percent would be charged for salaries between ₡793,000 ($1,455) and ₡1,190,000 ($2,183).

Workers whose monthly salary is equal to or exceeds ₡1,190,000 would pay 15 percent on the amount over that figure.

Employers are responsible for collecting the tax and paying the Finance Ministry no later than the 15th of each month.

The income tax brackets are calculated using a formula that takes into account the consumer price index (IPC) as reported by the National Statistics and Census Institute, which recorded an annual increase of 5.46 percent when comparing 2013’s IPC with 2014.

Once published, employers must use the provisions of the new brackets for the next payment scheduled on Nov. 15.

Last year’s calculations resulted in all salaries lower than ₡752,000 ($1,380) being tax-exempt.

Facebook Comments

You may be interested

Keylor Navas vs. Real Madrid: A meeting worthy of Champions
Keylor Navas
5 views
Keylor Navas
5 views

Keylor Navas vs. Real Madrid: A meeting worthy of Champions

Alexis Hontang / AFP and The Tico Times - September 17, 2019

Costa Rica’s Keylor Navas has finally settled the debate regarding PSG’s goalkeeper. On Wednesday, the Tico faces his former club,…

Police repress Independence Day demonstrations in Honduras
Central America
23 views
Central America
23 views

Police repress Independence Day demonstrations in Honduras

AFP and The Tico Times - September 16, 2019

Hundreds of Honduran police officers attacked with tear gas more than 1,000 people marching in parallel to Sunday's parade organized…

System failure causes power outage through much of Central America
Central America
53 views
Central America
53 views

System failure causes power outage through much of Central America

AFP and The Tico Times - September 16, 2019

A failure in a regional electrical interconnection system on Monday caused a blackout in Honduras and Nicaragua, and partially affected…

Do NOT follow this link or you will be banned from the site!