Noticias

Tax Bulletin

April 2016

Tax information

Current Base Salary

¢424.200

Current Interest Rate
(As from March the 1st, 2016)

12.92%

Late payment penalty rate
(month or part month)

1%

Reference Exchange rate BCCR USD
(April 3rd, 2016)

Buy:

¢529,64

Sell:

¢542,23

Common Reporting Standard, Costa Rica and the pending steps

Costa Rica will begin on January 1st, 2017 the implementation and compliance of the Common Reporting Standard (CRS) developed by the Organisation for Economic Co-operation and Development (OECD). This implies that the financial entities should apply due diligence procedures over the accounts of their clients and report the taxpayers of any of the 96 countries that are part of this initiative. The due diligence procedure consist in the research of indicia on the accounts information that determine the tax residency of the clients.

Implementation Steps of CRS. According to CRS, every country should comply with the following four steps to implement the CRS: (i) Translating the reporting and due diligence requirements into domestic law, (ii) Select a legal basis for the exchange of information, (iii) Put in place the administrative and IT infrastructure to collect and exchange information under the Standard and (iv) Protect confidentiality and data safeguards.

Despite that Costa Rica already has 19 Information Exchange Agreements, the CRS requires that the Country sign a Model Competent Authority Agreement with each participant jurisdiction in order to activate and operate the information exchange.

On April 27, 2016, the Tax Authorities published the regulation project called “Resolution regarding the Due Diligence on the Information Supply of the Financial Entities for the Tax Information Automatic Exchange, according to CRS.” The regulation was published on the website of the Tax Authorities in order to receive feedback from the involved parties.

Finally, it is still pending that the Government define the administrative and IT Infrastructure in order to allow the financial entities to comply with the requirements of the CRS.

Ricardo Valverde
Senior
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 www.deloitte.com/about 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. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 225,000 professionals make an impact that matters, please connect with us on FacebookLinkedIn or Twitter.

 

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?