Taxes

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.

Moving to another country like Costa Rica is always a big step, especially if you don’t have all the information together to be able to follow the rules. In most countries the tax authority or city will send you a notice when it’s time to pay your taxes. That’s not the case in Costa Rica, and you will be fined for late payment. Needless to say there are a couple of taxes you should know about.

Potential property owners are likely quite familiar with property taxes. However, a relatively newer tax has hit the real estate market that you should keep in mind should you consider purchasing property in Costa Rica. It’s called the Impuesto Solidario para el Fortalecimiento de Programas de Vivienda (roughly translated as the Solidarity Tax for the Strengthening of Housing Programs)

The cost of mandatory technical vehicle inspections in Costa Rica will remain unchanged for the next 12 months, as the Public Services Regulatory Authority (ARESEP) on Tuesday evening rejected a rates-hike request of up to 202 percent, depending on the type of vehicle.

RITEVE says vehicle inspection rates haven't increased in 10 years, and blames the Public Works and Transport Ministry for failing to issue a methodology to calculate them.