Costa Rica: Income tax treaty with UAE

Costa Rica-UAE income tax treaty withholding tax rates

Costa Rica-UAE income tax treaty withholding tax rates

An income tax treaty between Costa Rica and the United Arab Emirates has entered into force.

The treaty was published on 15 April 2021 in the official gazette of Costa Rica.

The Costa Rica-UAE income tax treaty provides for the following withholding tax rates:

  • Dividends
    • 5% (if the beneficial owner is a company that directly owns at least 20% of the capital of the company paying the dividends) or
    • 5% (in all other situations)
  • Interest
    • 5% (when the period for the loan’s maturity is five years or more) or
    • 10% (when the maturity period for the loan is less than five years)
  • Royalties
    • 12%

Read an April 2021 report (Spanish and English) [PDF 163 KB] prepared by the KPMG member firm in Costa Rica

Other topics covered in this report concern:

  • Measures to implement a temporary suspension of employment contracts in response to the coronavirus (COVID-19) pandemic
  • Amendments to the requirements for taxpayers requesting a change to the fiscal period for corporate income tax 



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.