Newsletter Num. 22

Newsletter Num. 22

The objective of this Bulletin is to share with each of the companies the most relevant information on legal and tax matters on a fortnightly basis.

Contacto local

Sergio García

Socio a cargo de la práctica de Impuestos & Servicios Legales

KPMG in Costa Rica

Correo electrónico

Contenido relacionado

Boletín informativo

Entrance in force of updating of the Harmonized Commodity Description and Coding System

The Ministry of Finance states that from January 1st, 2022, the VII amendment of the WCO Harmonized System will be implemented at the national level.

Through Executive Decree Number 43258-COMEX, it was published the resolution Number 450-2021 (COMIECO-EX) of July 22nd of 2021 and the annexes called “Annex 1: Central American Tariff System” and “Annex 2: Panama”. This document was published in the official Gazette last November 19th.

This implementation is carried out because every five years the WCO conducts a review and issues recommendations to update; eliminate, incorporate or modify existing tariff rates to adapt to technological advances, new product flows, and other requirements of international trade.

Furthermore, the harmonized system is used by the member countries of the WCO to classify and uniformly identify merchandise traded internationally.

In this specific case, through amendment VII, the following modifications are established:

-        Creation of specific games for 3D printers, multipurpose drones, and electronic/electrical waste.

-        Tariff classification for goods such as new tobacco and nicotine products, rapid virus diagnosis kits, dual-use goods, chemicals with global warming potential; regulated by their social and environmental impact.

Corporate Income Quarterly advance payment Abstract

Through the Ministry of Finance’s portal, the Tax Authorities announces that by December 31st is the deadline for making the third quarterly advance payment at the latest.

The cancellation of the corresponding amount can be made by different means enabled for this purpose, such as a Real-Time Debit (DTR by its initials in Spanish) *, through connectivity, using your bank account, through the website of the authorized financial institution of your preference, or by appearing at the boxes of these entities indicating the corresponding ID number.

It is important to consider the provisions to carry out these obligations and thus avoid penalties.

Law of Attraction of Cinematographic Investments in Costa Rica

Law number 10071 "Attraction of Cinematographic Investments" was published in the Official Gazette on December 13th of the current year.

The purpose of this law is to promote investment and development of international film productions, co-productions, and activities in Costa Rica, as a source of economic generation, productive chains, creation of ventures, and hiring of national human talent.

Through this, benefits and incentives will be granted that will allow our country to be competitive in attracting the film industry to carry out large productions in the national territory.

Specifically, those natural or legal persons not domiciled in Costa Rica will benefit - as producers or co-producers with national individuals or legal entities - who carry out film or audiovisual investment projects duly approved by the Costa Rica Foreign Trade Corporation (PROCOMER), for the following incentives:

-        Exemption from income tax on dependent or independent personal work and of withholdings for remittances abroad of foreign personnel for payments to all those workers necessary for the development of the project; provided that said payments are not made with funds from a Costa Rican source.

-        Temporary importation of equipment and spare parts for film and audiovisual production within the territory with a suspension of all import taxes, as well as exemption from guarantee deposit.

-        Exemption from all import taxes, levies, fees, or contributions that fall on tools, clothing, makeup, scenery, and technical material that are required to carry out the project.

-        Refund of ninety percent (90%) of the total amount of the Value Added Tax - canceled on purchases - when the beneficiary makes purchases of goods and services in Costa Rica directly related to the project, which exceed an amount of US $ 500.00 00 (five hundred thousand dollars).

About the 2022 Annual Audit Plan

Through resolution DGT-R-34-2021 "Resolution on economic sectors and activities to be included as criteria for the selection of taxpayers in the Annual Audit Plan", published on December 13, in the Official Gazette Number 239, it is stated that the Supervision Directorate of the General Tax Directorate may select for auditing in 2022 those entities  comprised within the following sectors and economic activities defined according to the International Standard Industrial Classification (ISIC):

—   Agriculture, livestock, hunting, fishing, and forestry.

—   Exploitation of Mines and Quarries.

—   Manufacturing industries.

—   Supply of electricity, gas, and water.

—   Construction.

—   Wholesale and Retail.

—   Transportation and Storage.

—   Hotels and restaurants.

—   Private households with domestic service.

—   Extraterritorial organizations and bodies.

—   Other community, social, and personal service activities.

—   Betting, gambling, casino, and slot machine operation centers.

—   Information and communications.

—   Financial intermediation and insurance.

—   Real estate, rental, and business activities.

—   Professional, scientific and technical activities.

—   Administrative and support services activities.

—   Public administration and defense; compulsory social security.

—   Teaching.

—   Human health and social assistance activities.

Additionally, it is mentioned that it is possible to audit those taxpayers delimited by the different criteria established in the Regulation on Objective Criteria for the Selection of Taxpayers for Examination.

These provisions will be applicable as of January 1st, 2022.

© 2022 KPMG S.A., sociedad anónima costarricense y firma miembro de la organización mundial de KPMG de firmas miembros independientes afiliadas a KPMG International Limited, una compañía privada inglesa limitada por garantía. Todos los derechos reservados.
Para más detalles sobre la estructura de la organización global de KPMG, por favor visite https://home.kpmg/governance.

La información aquí contenida es de naturaleza general y no tiene el propósito de abordar las circunstancias de ningún individuo o entidad en particular. Aunque procuramos proveer información correcta y oportuna, no puede haber garantía de que dicha información sea correcta en la fecha que se reciba o que continuará siendo correcta en el futuro. Nadie debe tomar medidas basado en esta información sin el debido asesoramiento profesional después de un estudio detallado de la situación en particular.

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