Taxes

Lawmakers of the Legislative Commission on Childhood, Adolescence and Youth in a unanimous vote on Tuesday approved the drafting of a bill to increase from $29 to $33 the country's exit tax in order to provide funds for the National Olympic Committee.

Messages are being sent to owners of high-value properties or those who have recently purchased luxury vehicles but submitted tax returns reporting low income, which exempts them from paying income tax.

Currently some 952,000 workers in Costa Rica are exempt from the income tax but that figure likely would decrease if the Finance Ministry approves lower income brackets used to calculate taxes.

The new online platform, called Virtual Tax Administration (ATV), will be available at the ministry’s website and will replace current software taxpayers are required to install on their computers.

Business leaders and opposition party lawmakers have already voiced their opposition to the government's proposed tax reform bills.

The FBAR, Report of Foreign Bank and Financial Accounts, has to be filed if you have more than $10,000 in foreign financial accounts.

One of the major proposed changes would swap the current sales tax for a value added tax that would encompass services as well as goods. Tourism activities would be exempt for the first year after the law goes into effect, then charged 5 percent in the second year, 10 percent in the third and 15 percent starting the fourth year.

The Constitutional Chamber of the Supreme Court, or Sala IV, on Wednesday evening ruled three articles of the country's Corporate Tax Law unconstitutional, and as a result, collection will be suspended starting next year. The tax must be paid this year, however, by this Saturday's deadline.