Many smaller firms can duck proposed corporation tax

Some corporations operated by expats will be able to dodge the proposed $200-a-year tax on their enterprise because the firm qualifies as a small or medium business.

The Ministerio de Economia, IndustrĂ­a y Comercio said that there are about 31,000 businesses that would be exempt from the special tax. Only about 2,500 are registered with the ministry. Registration is one of the ways a business operator can exempt the firm from paying the tax, according to the proposed law.

The law has not been passed yet, but it is a priority of the Laura Chinchilla administration.

The size of firms that qualify are set out in a law. But the ministry also has a calculator online that asks the annual income of the company and the number of employees.

Then the calculator determines the category in which a company should be listed. There also is a way for a business operator to register the firm online, thus avoiding the tax.

In order to be exempted, the firm also must have paid all its obligations to the Caja Costarricense de Seguro Social, paid its income tax and have no outstanding debts with employees, the ministry notes.

The tax is designed to hire more police officers

This entry was posted in Costa Rica News. Bookmark the permalink.