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Costa Rica: Capital income return; no VAT liability for company directors

Costa Rica: Capital income return; no VAT liability

Guidance released by the tax authority on 20 August 2019 concerns:


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  • Resolution DGT-47-2019 regarding the use of Form D149 “Self-assessment tax return on movable capital income” and providing that the beneficiary of movable capital income must submit a self-assessment tax return if tax could not be withheld and the capital income is not involved in the taxpayer’s lucrative activity.
  • Ruling number DGT-1388-2019 providing that remuneration paid to members of a board of directors for services by members of executive or management boards are not subject to value added tax (VAT)—this is a change of position from ruling number DGT-1120-2019 that had provided this type of remuneration was subject to VAT.

Read an August 2019 report (Spanish and English) [PDF 43 KB] prepared by the KPMG member firm in Costa Rica

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