BLP – TAX NEWS ONLINE MAY, 2018

GAZETTE SUMMARY

Costa Rica

–April 2018–

BILL OF LAW

Strengthening of Public Finances – Tax Reform

The bill of law to transform the current Sales Tax into a value-added tax was approved by the Treasury Commission of Congress on April 10, 2018, and transferred to the Plenary for a continuation of the legislative process.  If enacted, the value-added tax would apply to all services. In addition, the bill contains important changes in the Income Tax Law, such as a tax on capital gains.

(Published in the Digital Appendix No. 73 of the Official Gazette No. 63 on April 12, 2018)

 

executive decrees

Update of the single tax by fuel type

The amounts of the single tax by type of fuel were updated in accordance with the following table:

Type of fuel per liter Tax (colones)
Regular gasoline 242.75
“Super” gasoline 254.25
Diesel 143.50
Asphalt   49.25
Asphaltic emulsion   37.00
Bunker fuel   23.50
LPG   49.25
Jet fuel A1 145.50
Av gas 242.75
Kerosene   69.25
Heavy diesel   47.25
Heavy naphtha   35.00
Light naphtha   35.00

This schedule is in force from May 1, 2018.

(Executive Decree No. 41036-H of April 6, 2018, published in the Digital Appendix No. 85 of the Official Gazette No. 73 on April 26, 2018)

 

Shareholders´ Registry Regulations

The Registry of Shareholders was established by the Law to Improve the Fight against Tax Fraud. However, the law lacked the proper regulations regarding transparency and disclosure of the final beneficiaries of legal entities and other legal structures based in Costa Rica, managers of third-party assets in favor of its clients, non-profit organizations, and private trusts that would enable the Tax Authorities to access the information related to all the shareholders, as well as final or effective beneficiaries.

Among other things, the new Regulations establish that the requisite information should be supplied annually in accordance with the date to be defined by the Tax Authorities and the Costa Rican Drug Institute and in the format defined by the Central Bank of Costa Rica.

The general information to be provided is:

  • Composition of voting rights.
  • Information on who has the right to appoint or dismiss most of the administrative, management, or supervisory bodies.
  • Information on who controls the entity according to the bylaws.
  • Shareholder information.

(Executive Decree No. 41040-H on April 5, 2018, published in the Digital Appendix No.  82 of the Official Gazette 70on April 23, 2018.)

 

ADMINISTRATIVE RESOLUTIONS

Validation of legal representative before the Tax Administration

This new resolution modifies article 2 and repeals article 13 of Resolution DGT-R-08-2018 of February 7, 2018. According to these changes the legal representatives of legal entities and guardians of minors and invalids must complete the form that the Tax Authorities have prepared for this purpose, as well as provide the legal status where applicable, within 10 working days from the date that the legal representative is changed in the Public Registry.

(Resolution RES-DGT-R-017-2018 of March 23, 2018, published in the Official Gazette No. 62 on April 10, 2018.)

 

Large Taxpayers and Large Territorial Enterprises

The Tax Authorities issued the criteria to define a taxpaying entity as a “Large Taxpayer” or a “Large Territorial Enterprise”, according to the following parameters:

  • Large Taxpayer:
  1. When the average of taxes paid for the last three fiscal periods is equal to or exceeds ₡450,000,000.00.
  2. When the average gross income declared in the last three fiscal periods is equal to or exceeds ₡40,000,000,000.00.
  3. When the average of total declared assets in the last three fiscal periods is equal to or exceeds ₡50,000,000,000.00.
  4. When the taxpayer is subject to SUGEF, SUGEVAL, SUPEN, SUGESES or SUTEL regulations.

 

  • Large Territorial Enterprise:
  1. When the average of taxes paid for the last three fiscal periods is equal to or exceeds ₡120,000,000.00.
  2. When the average gross income declared in the last three fiscal periods is equal to or exceeds ₡20,000,000,000.00.
  3. When the average of total declared assets in the last three fiscal periods is equal to or exceeds ₡25,000,000,000.00.

Interested parties must be notified of their classification by means of a reasoned decision taking effect from the first month following their notification, such classification to be maintained for at least 2 fiscal periods.

(Resolution DGT-R-018-2018 of April 3, 2018, published in the Official Gazette No. 63 on April 12, 2018.)

 

Update of the specific tax for each milliliter of absolute alcohol

Resolution RES-DGH-027-2018 of April 6, 2018 updates the amounts of the specific tax for each milliliter of absolute alcohol in accordance with the following table:

Percentage of alcohol by volume Tax (colones per absolute alcohol milliliter)
Up to 15% 3.31
More than 15% up to 30% 3.96
More than 30% 4.61

(Published in the Official Gazette No. 68 on April 19, 2018)

 

TAx OBLIGATIONS FOR MAY 2018

Date Type of Tax Return
10
  • D-150 Annual Return: Summary of payments or withholdings made on account of the Income Tax
  • D-155 Monthly statement of summary of withholdings payment on account of the Sales Tax and Income Tax
15
  • D-103: Withholding Tax
  • D-104: General Sales Tax, traditional regime
  • D-106: Excise Tax
  • D-113: Income Tax and Capital Gains from investment funds
  • D-114: Single tax per fuel type
  • D-117: Specific tax on alcoholic beverages
  • D-171: Specific tax on non-alcoholic bottled beverages and toilet soaps

 

tax relevant information

Current 2018 Base Salary ¢431,000
Current Interest Rate (April 1st, 2018) 13.73%
Reference Exchange Rate – BCCR USD  (April 30, 2018) Purchase: ¢562.40
Sale: ¢569.31