Author: Mauro Esquivel
The new income tax brackets are effective from January 1 to December 31, 2021. An adjustment must be made each year, as provided in Law 7092, and in accordance with the Consumer Price Index.
This update responds to the variation in the Consumer Price Index (CPI) which measures how the prices of products change. It is assumed that, with that, people’s incomes also change. The indicator is measured by the National Institute of Statistics and Censuses (INEC).
Law 9635 “Law for the Strengthening of Public Finances”, modified the ordinary fiscal period of income tax, so that now the closing of the period is December 31 of each year, and the deadline to file and pay, without fines, was moved to March 15 of the following year.
EMPLOYEES, RETIRED AND PENSIONERS IN 2021
The tax that must be paid for the salary increased by 0.28% as of January 1, 2021.
The new tranches will affect all wage earners whose income is higher than ₡ 842,000.00 per month. Before that amount they are exempt.
With adjustment, these are the new legs:
-Salary up to ₡ 842,000.00: exempt.
-Between ₡ 842,000.00 and up to ₡ 1,236,000.00 per month: 10%.
-Between ₡ 1,236,000.00 and up to ₡ 2,169,000.00 per month: 15%.
-Between ₡ 2,169,000.00 and up to ₡ 4,337,000.00 per month: 20%.
-Over the excess of ₡ 4,337,000.00 per month: 25%.
Additionally, wage earners are entitled to a tax credit, which is a reduction that is applied to the tax for being married or having children, which is also adjusted each year.
The monthly tax credit per child remained at ₡ 1,570, as confirmed by Taxation, and the tax credit per spouse went from ₡ 2,360 to ₡ 2,370.
NATURAL PERSONS WITH PROFITABLE ACTIVITIES IN 2021
-Annual net income (profit) up to ₡ 3,742,000.00: Exempt.
-Over the excess of ₡ 3,742,000.00 and up to ₡ 5,589,000.00 of annual net income: 10%.
-Over the excess of ₡ 5,589,000.00 and up to ₡ 9,322,000.00 of annual net income: 15%.
-Over the excess of ₡ 9,322,000.00 and up to ₡ 18,683,000.00 of annual net income: 20%.
-Over the excess of ₡ 18,683,000.00 of annual net income: 25%
The exception to the deduction is in salaried persons who also carry out a lucrative activity. If as a salaried employee you already enjoy an exempt section, then you do not have it as a natural person with lucrative activity.
The modification affects LEGAL PERSONS (COMPANIES), for whom the new sections apply as detailed below:
Applies for gross income (total income) that does not exceed ₡ 109,337,000.00 during the fiscal period:
-On the first ₡ 5,157,000.00 of annual net income (income less expenses = utility): 5%.
-Between ₡ 5,157,000.00 and up to ₡ 7,737,000.00 of annual net income: 10%.
-Between ₡ 7,737,000.00 and up to ₡ 10,315,000.00 of annual net income: 15%.
-Over the excess of ₡ 10,315,000.00 of annual net income: 20%.
If the gross income during the fiscal period exceeds ₡ 109,337,000.00, the previous parameters do not apply and you must pay 30% of the annual net income.
At 9 am, the Editorial Team of our Comprehensive Travel Guide & Magazine meets for another day of creation: ¿How to support our clients better, develop a new strategy, decide which is the best photo for an article, and answer our readers’ questions?
To provide better attention to the taxpayer and facilitate the completion of tax procedures, since August 28, 2020, the Ministry of Finance made the Virtual Procedure (TRAVI) platform available.
This platform includes approximately 40 procedures for extensive control, collection, valuation, and inspection; It works as an accompanying instrument for taxpayers who need to be up to date with tax regulations.
Every time a client arrives in Costa Rica with the dream of acquiring property near the beach, with beach front and direct access to this, his dream becomes a “nightmare” when he hears words such as Concession, Maritime Terrestrial Zone, and its Law. And it is not for less, since this type of land has different care and treatment from many other properties in the national territory. Various government institutions such as municipalities, the Costa Rican Tourism Institute, and others are involved.
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A great paradox encloses the new human condition, even though so many essayists have presented us with such eloquent and diverse points of view. It only amplified this dilemma since probably the best we can comprehend is that this great paradox would be logical, and therefore, its comprehension inaccessible.
What to do, Where to eat and Where to stay…
- Activities and Tours
- Whale Watching Tour
- Natural Attractions
- Marino Ballena National Park
- Hotels and Accommodations