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Costa Rica: Tax relief in response to coronavirus (COVID-19)

Costa Rica: Tax relief in response to coronavirus

Pending legislation aims to address implications of the coronavirus (COVID-19) epidemic for taxpayers in Costa Rica.


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Under the legislation, taxpayers would not be required to make advance payments of income tax during the months of April, May, and June 2020.  This relief, however, would not be available for taxpayers that are required to pay their annual income tax “liquidation” during these months. 

The legislation includes a three-month extension of the requirement to remit value added tax (VAT), excise tax, and customs taxes and duties. Taxpayers would be able to file VAT returns without payments of VAT for the months of March, April, and May 2020, with the remittance of tax not required until 31 December 2020. Also, there is a measure allowing a payment arrangement with the tax administration without the imposition of interest or penalties. Beginning 1 January 2021, however, these tax payments would be subject to interest and penalties.

Lastly, there would be an exemption from VAT on commercial leases for the months of April, May, and June 2020 if the lessee and the lessor are registered in the taxpayers registry. 

Read a March 2020 report [PDF 54 KB] prepared by the KPMG member firm in Costa Rica

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