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Costa Rica: Taxation and savings certificates, wire transfers, short-term rentals, other items

Costa Rica: Taxation and savings certificates

The KPMG member firm in Costa Rica prepared a report that describes the following developments:


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  • Tax on certificates issued by savings and credit cooperatives: A resolution from the tax administration indicates that an exemption is applicable with respect to the income tax on the profits on certificates issued by savings and credit cooperatives.
  • VAT and certain wire transfers: A resolution provides that wire transfers of certain financial entities are not exempt from value added tax (VAT).
  • Regulation of non-traditional hosting services provided via digital platforms: A law regulates the provision of tourist rental services of non-traditional hosting via digital platforms and provides that taxes are to be paid by the trading companies.
  • Multilateral instrument (MLI) approved: Costa Rica approved the OECD multilateral convention to implement tax treaty-related measures (i.e., the MLI) to prevent base erosion and profit shifting (BEPS). The Costa Rican income tax treaties that will be covered by the MLI are those with Mexico and Spain.
  • Free trade zones, definition of strategic sectors:  Guidance defines “strategic sectors” for purposes of the free trade zone system as being industries that qualify as strategic for the development of Costa Rica. Certain services may not be eligible for the benefits of the free trade zone system including: professional services, banking and financial and insurance services, mining, exploitation or extraction of hydrocarbons, the production or marketing of weapons or ammunition, and electricity generation for other than self-consumption purposes.

Read a November 2019 report (Spanish and English) [PDF 59 KB] prepared by the KPMG member firm in Costa Rica

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