New tax on corporations will begin in three months

President Laura Chinchilla Miranda has signed a law to tax corporations and similar entities in the country. At the same time, the measure was published in the La Gaceta official newspaper.

The final text contains additional information. Among these is tying the annual tax to the country’s base salary, the amount a mid-level judicial worker makes. That amount now is about 320,000 colons, so the tax will be half that or about $313.

However, the base salary increases each year along with the minimum wages for other salaries. So the tax is at least linked to inflation. Specifically the law says the tax is 50 percent of a base salary for active corporations and 25 percent for inactive ones.

The text of the law appears to say that it goes into force three calendar months after the first day of the month after publication. That would mean April 1. The tax would be 75 percent of the annual amount in the first year. As expected the law says that businesses cannot list the tax as a deduction when paying income tax.

The tax is supposed to increase the security of the country, and police officials gave a presentation Tuesday of what they plan to purchase. The items included nearly 17,000 pairs of boots, 127 pickups, 562 police radios and 140 computers.

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