Chance of a Thunderstorm
Weather for San José:
High 28° / Low 19°
Chance of a Thunderstorm
Click here for six-day forecast for 16 communities across Costa Rica!
CLICK HERE TO
SIGN UP FOR OUR FREE DAILY NEWSLETTER
BUY
540.00
SELL
552.00
BUY
609.77
SELL
633.75
BUY
416.23
SELL
440.28
Banco BAC
Banco BCR
Banco Nacional
Banco Popular
Banco Scotiabank

New Income Tax Brackets for Fiscal Year 2014 in Costa Rica

Share this article

Costa Rica MoneyWage earners, self-employed professionals and businesspeople in Costa Rica who earn more than 752,000 colones (about $1,504) per month will be subject to withholding by the national revenue collection authority in 2014. Such is the Executive Decree issued by the Presidential Office in early October 2013. Workers who earn less than 752,000 colones per month in 2014 will be exempt from income tax obligations.

The minimum threshold for income taxation in fiscal year 2013 was 714,000 colones (about $1,428) per month. Individuals who earned from 714,000 colones to 1.07 million colones (about $2,034) per month were subject to 10 percent withholding on their income. The maximum withholding was 15 percent for those who earned more than $2,034 per month.

In 2014, those who earn $1,504 to $2,256 per month will be subject to 10 percent withholding. Those who earn more than $2,256 per month will be subject to 15 percent withholding. This applies to Costa Rican citizens, legal residents and foreign employees duly authorized to work by immigration authorities. Any income earned outside of Costa Rica is not subject to either withholding or taxation.

Not Much Withholding in Costa Rica

Based on the current minimum wages and salary ranges in Costa Rica, most workers will be exempt from withholding in 2014. A librarian, for example, earns between 98,651 and 147,241 colones per month (about $200 to $294). A bus driver on the upper range of the pay scale earns $600 per month, about the same as a bilingual tour guide. A chef can earn up to $900 per month. A coffee picker would have to deliver about 938 baskets of berries in a month before he or she is subject to income tax.

In other income taxation news, Costa Rica recently formalized the Foreign Account Tax Compliance Act (FATCA) with the United States Income Revenue Service (IRS). This topic has been widely reported on the pages of the Costa Rica Star, particularly as it relates to U.S. expats surrendering their citizenship in record numbers around the world. In some circumstances, a U.S. expat who earns a very high income in Costa Rica could end up being subject to withholding under both FATCA and the national revenue collection authority, but this would imply not taking advantage of any deductions or tax breaks.

Source: La Nacion

Print Friendly

Related Articles

Eco-Friendly Coffee Rust Fungicide Being Shipped to Costa Rica

Phoenix, June 22, 2016 (GLOBE NEWSWIRE) — BioNovelus, Inc. (PINKSHEETS: ONOV) is pleased to [...]

Costa Rica at the First Global Meetings Industry Day

SAN JOSE, Costa Rica – Last year, Costa Rica received over one million North American visitors who [...]

Major Contact Lens Manufacturing Facility Opens in Costa Rica

SAN JOSE, Costa Rica — CooperVision has opened a new, 100,000 square-foot, high-volume manufacturing [...]

Costa Rica Liquor Market: Variety Increasing – Prices Remain Stable

Both mature and developing alcoholic drinks categories in Costa Rica experienced increased competition in [...]

Costa Rica Big Data Software Developer Expands to Florida

COLORADO SPRINGS, Colo., June 8, 2016 /PRNewswire/ — On May 25th, 2016 STL Marketing Group, Inc. [...]

Australian Medical Device Firm Will Manufacture from Costa Rica

PALO ALTO, Calif., June 8, 2016 /PRNewswire/ — AirXpanders Inc. (ASX: AXP) (AirXpanders or Company) [...]

First Ship Scheduled to Cross Expanded Panama Canal Gets Underway

Panama City, Jun 11 (EFE).- The container ship Cosco Shipping Panama, which on June 26 will be the first [...]

U.S. Biotech Firm Chooses Costa Rica as Central America HQ

PHOENIX, AZ / ACCESSWIRE / June 9, 2016 / BioNovelus, Inc.  is pleased to announce the creation of [...]