Newsletter Num. 12 - 2022

Newsletter Num. 12 - 2022

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.

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Contacto local

Carmen Sánchez

Socia a cargo de la práctica de Impuestos & Servicios Legales

KPMG in Costa Rica

Correo electrónico
Boletín informativo

New List of Goods Included in the Basic Tax Basket

Executive Decree Number 43790-H-MEIC-S regulates the list of goods that are part of the Basic Tax Basket for the comprehensive welfare of Families ("CBTBIF" by its initials in Spanish). The products included in the list will be subject to VAT at a 1% tax rate.

The list of products is made based on food selection criteria, nutritional components of all food groups, articles, cleaning products, personal hygiene products that protect the income and expenses of households in the first three deciles of economic income.

The Regulation makes some changes with respect to the products that are included in the list. For example, fruits such as sweet orange, soursop, “cas fruit” (or Costa Rican guava) and sweet lemon were excluded. On the other hand, tomato sauce and different types of fish were included in the list.

In relation to the reduced rate, the Regulation indicates the following:

  • Application of the VAT rate of 1%: This rate should apply to those goods of greater consumption, in the population group corresponding to the 30% of lower income per household, according to the latest Household Income and Expenditure Survey issued by the National Institute of Statistics and Censuses ("INEC" by its initials in Spanish).
  • Agricultural Producers: Agricultural producers should be able to purchase the goods and services at the VAT reduced rate of 1%, provided that the service is directly related to the goods included in the current list, or an input of the goods included. Taxpayers should be registered with the Ministry of Agriculture and Livestock ("MAG" by its initials in Spanish) as an agricultural producer, or with the Costa Rican Fisheries and Aquaculture Institute as a commercial fisherman. In addition, they must be registered in the Register of Merchants, Distributors, and Producers of Basic Tax Basket and the Special Agricultural Regime of the Ministry of Finance. 

Finally, the Regulation revokes the Executive Decree Number 41615-MEIC-H "Basic Tax Basket Regulation" and its reforms. The provisions established in this Regulation shall apply from the first day of February 2023. 

Source: Portada Imprenta Nacional

 

 

Extension of the Period for Filing the Informative Tax Returns of Dormant Companies

Resolution number DGT-R-033-2022 establishes that the deadline for the submission of informative tax returns of dormant legal persons for the fiscal years 2020, 2021, and 2022 was extended until April 30th, 2023.

In this regard, taxpayers should not incur in any penalties or sanctions due for the late submission of the tax returns, if they comply with this obligation on the abovementioned date and through the form D-101 or through the specific form that is prepared for the informative tax return of these taxpayers.

These provisions came into effect on 14th November this year. 

Source: Portada Imprenta Nacional

Procedure for the Tax Credit Determination for the Acquisition of Vehicles

Through Resolution Number DGT-R-34-2022 of the General Directorate of Taxation ("DGT"), the Resolution Number DGT-R-23-2014 "Determination of the tax credit of the General Sales Tax for the acquisition of vehicles that are subject to the application of the Value-Added Margin” was repealed.

The revoked resolution established the requirements for the taxpayer to use as a tax credit the General Sales Tax paid on the importation of vehicles used for the commercialization and distribution of goods.

Therefore, the resolution is repealed since their provisions were based on the General Sales Tax, which were reformed by the Value Added Tax. The Value Added Tax Law and its Regulations establish the conditions for the accreditation of the VAT in these cases.

These provisions became effective as of the date of signature.  

Source: Portada Imprenta Nacional

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