• Costa Rica Real Estate

New tax brackets for the new tax year

October 4, 2016

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.

Facebook Comments

You may be interested

Despite reports, Costa Rica continues to not be an island
Tico Times Shade
3621 views
Tico Times Shade
3621 views

Despite reports, Costa Rica continues to not be an island

Alejandro Zúñiga - July 23, 2019

Despite recent reports to the contrary, The Tico Times has confirmed that Costa Rica is not an island. This news…

Costa Rican dog attends trial as a victim of animal abuse
Costa Rica
740 views
Costa Rica
740 views

Costa Rican dog attends trial as a victim of animal abuse

AFP and The Tico Times - July 23, 2019

Champion, a two-year-old dog, became on Monday the first animal in Latin America to attend the trial of his former…

Flamingo Fishing Rodeo set to begin in one of sportfishing’s best destinations
Fishing
178 views
Fishing
178 views

Flamingo Fishing Rodeo set to begin in one of sportfishing’s best destinations

The Tico Times - July 23, 2019

Flamingo, Guanacaste, is one of sportfishing’s legendary destinations, an idyllic laid-back beach community located on Costa Rica's northern Pacific coast.…

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