Slightly higher limit announced that exempts workers from withholdings

The Ministerio de Hacienda has set new amounts for the collection of salary withholdings.

For the next fiscal year starting Thursday monthly salaries of 793,000 colons or lower are exempt from withholdings. That is about $1,504. This year the cutoff was 787,000 colons.

The adjustment is based on the consumer price index, said the ministry.

Those who earn more than this amount and up to 1,181,000 colons a month will be subject to a 10 percent withholding. Those who earn more than that face a 15 percent withholding. Employers are obligated to remit the money withheld to the tax department in the ministry.

The amounts for withholdings were raised slightly, too, based on the consumer price index, said the ministry.

The ministry figured an increase of about three-quarters of a percent, it said.

The amounts withheld are applied to the employee’s payment of income tax at the end of the year.

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