BLP – TAX NEWS ONLINE JUNE, 2018

GAZETTE SUMMARY

Costa Rica

–May 2018–

EXECUTIVE DECREES

Incentives for Electric Vehicles

The Regulations under the Law of Incentives and Promotion for Electric Transportation have been issued. The economic incentives for electric vehicles included in the Law are the following:

  • Exemption from the General Sales Tax, proportional
  • Exemption from the Excise Tax, proportional
  • Exemption from the customs duties, proportional
  • A schedule of exemptions from vehicle ownership tax for a period of 5 years

The proportional exemptions on the aforementioned taxes are as follows:

  • 100% exemption on sales, excise and custom taxes over the first $30,000 of the CIF value.
  • In excess of $30,000 and up to $ 45,000, the exemptions are: 50% of sales tax, 75% of excise tax and 100% customs value tax.
  • In excess of $45,000and up to $60,000, the exemptions are: 0% of sales tax, 50% of excise tax and 100% of customs value tax.
  • In excess of $60,000, there are no exemptions.

The schedule of exemptions from the ownership tax is as follows:

  • 100% exemption in the 1st year
  • 80% exemption in the 2nd year
  • 60%exemption in the 3rd year
  • 40%exemption in the 4th year
  • 20%exemption in the 5th year

In addition, this type of vehicle will have non-economic incentives such as no vehicular restriction, exemption from the payment of parking meters, and the availability of special parking spaces.

(Executive Decree No. 41092-MINAE-H-MOPT Published on the National Gazette No. 92 on May25, 2018)

 

administrative resolutions

International Taxation and Commitments within the Organisation for Economic Co-Operation and Development (OECD)

The Tax Authorities have committed to the OECD to develop and strengthen those functions related to international taxation, in compliance with international standards of fiscal transparency and confidentiality, in order to fight against base erosion and profit shifting (BEPS) and also to participate in the forums and working groups of the Fiscal Affairs Committee.

Consequently, the Tax Authorities have formed a group to develop a national project designed to identify, determine, and execute the best practices in the negotiation of international tax conventions and in matters of transfer pricing, as well as to coordinate the implementation measures in the BEPS reports and to elaborate proposals to modify the regulations in order to fully comply with the commitments assumed within the OECD.

(Published in the Digital Appendix No. 89 of the National Gazette No.77 on May 3, 2018)

 

Generic Exemption on Local Purchases

By Resolution RES-DGH-030-2018 of April 30, 2018, the Tax Authorities authorized the Exemption Management Department to grant a generic exemption authorization on the purchase of raw material, packaging material, boxes, labels, bags, bottles, jars and lids shown in Annex No. 1, as well as the accessories and spare parts of the equipment listed in Annex No. 3 of Executive Decree No. 21322 -HS-MEIC called “Regulation for the Import of Medicines and for the Exemption of Raw Materials, Inputs, and all Intermediate or Final Products used in the Preparation of Medicines, as well as other Medical Equipment”, in order to permit the acquisition of such items in the local market exempt from the General Sales Tax.

The request must be made through the MYOB EXO (Exonet) System, detailing the list of products that are planned for exemption under this modality, with a detailed description of the type of goods and quantities. This information will be analyzed previously by the Ministerio de Economía, Industrias y Comercio (MEIC) for its recommendation in the system before resolution by the Tax Authorities. A generic exoneration will be granted for a period of 3 months, renewable for 1 month prior to its expiration.

(Published in the Digital Appendix No. 10589 of the National Gazette No. 88 on May 21, 2018)

 

TAX OBLIGATIONS FOR JUNE 2018

Date Type of Tax Return
11 –      D-150 Annual Return: Summary of payments or withholdings made on account of the Income Tax

–        D-155 Monthly Statement: Summary of payments and withholdings made  on account sales tax and income tax

14 –      D-113 Income Tax and Capital Gains from investment funds

 

15 –      D-103: Withholding Tax

–      D-104: General Sales Tax, traditional regime

–      D-106: Excise Taxes

–      D-107: Casinos Tax

–      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 on Tobacco products

–      Para fiscal contribution on telephonic services

30 –      Advanced Income tax payment

–      Partial payment of tax on companies using electronic betting calls

 

information relevant to taxation

Current 2018 Base Salary ¢431.000
Current Interest Rate (April 1, 2018)      13.73%
Reference Exchange Rate – BCCR USD

(May 31, 2018)

Purchase: ¢563.50
Sale: ¢568.77