Tax Bulletin

January 2016

Tax information

Current Base Salary
(January 1st, 2016)


Current Interest Rate


Late payment penalty rate
(month or part month)


Reference Exchange rate BCCR USD
(January 1st, 2016)





Doble Taxation Agreement With Germany: Costa Rica’s path to international compliance

2016 started with an addition to the legal tax frame for Costa Rica with the approval of the Tax Agreement to Prevent Double Taxation and Tax Evasion with the Federal Republic of Germany by the Legislative Assembly, almost two years later after it was signed by both countries on February 13th, 2014.

In recent years, it has being of significant priority for the Costa Rica to send a message to the international community of its willingness to adopt international tax norms, reaffirming its ambition of becoming a complying country, leaving behind any reminiscence of its previous classification in the year 2009 as an uncooperative tax heaven. It was this classification that triggered in Costa Rica the adoption of a commitment to comply with a series of tax norms, and due to this commitment, it was classified as part of the jurisdictions that have committed to the internationally agreed tax standard but not yet substantially implemented, or “grey list”.

As a developing country it is of vital importance for Costa Rica to attract both foreign direct investment and inbound transfers of technology and skills, and being considered an uncooperative tax haven by the OECD- the economic forum of the most powerful countries in the world- does precisely the opposite of presenting the country as a safe and desirable place for foreign direct investment.

The country has made an effort to fulfill the commitment made in 2009 signing fourteen agreements of exchange of information for tax purposes, approving in 2011 a tax treaty to prevent double taxation and tax evasion with Spain, and now in 2016 approving the tax treaty with Germany, the second tax agreement to prevent double taxation and tax evasion for the country.

The Agreement with Germany follows the line set by the OECD, regulating the taxation of corporate benefits and assets, with the main purpose of fostering a neutral taxation environment amongst the two countries and facilitate with this the economic and commercial exchange.

For Germany, it includes regulation pertinent to the income tax, the corporate tax, the commerce tax and the patrimony tax. As for Costa Rica, the Treaty’s regulations are pertinent to the income tax, the fixed capital assets tax and the automotive vehicles, vessels and aircrafts property tax.

Regarding the compliance of information exchange norms, it is worth to mention that the Protocol for the implementation of the Tax Treaty stipulates that the regulations to protect banking secrecy in Cost Rica will not limit the exchange of information for tax purposes between the two countries made in application of the Treaty.

With the approval of the Tax Treaty with Germany, Costa Rica takes another step towards the compliance of the rules set by the OECD and with the sum of all the efforts made by the country in recent years, along with the diplomatic efforts made in the international political community, the country sends a clear message that it is willing not only to comply with this set of rules made by the OECD but to take any action necessary to play in the leagues of the economic rulers of the world.

Daniela Vargas
Tax & Legal Services

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms.


Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 220,000 professionals are committed to making an impact that matters.


This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

Did you find this useful?