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.