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 

 

 

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