CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Costa Rica Expected To Keep Rate For New VAT At 13 Percent

Costa Rica Expected To Keep Rate For New VAT At 13 Percent

by Mike Godfrey, Tax-News.com, Washington

17 May 2017


Costa Rica may opt for a lower value-added tax rate when it implements the levy.

The International Monetary Fund (IMF) noted the plans in its Article IV consultation with the country.

In December 2016, the IMF urged Costa Rican lawmakers to agree on "much-needed" consumption tax and income tax reforms currently before parliament. However the regime has yet to be approved.

It was previously proposed that the rate would be increased from 13 percent, as under the current general sales tax regime, to 15 percent.

The IMF said that it has heard from authorities that Costa Rica will no longer increase the rate by two percent over two years, significantly reducing the revenue that could be received from replacing the general sales tax with VAT. The IMF estimates that the new VAT will boost revenues by just 1.5 percent of gross domestic product, despite plans to more broadly apply the headline rate, "mainly due to the removal of the VAT rate increases."

TAGS: individuals | tax | value added tax (VAT) | sales tax | law | International Monetary Fund (IMF) | Costa Rica | tax reform

To see today's news, click here.

 
















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »