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 Plans Online Gambling Tax

Costa Rica Plans Online Gambling Tax

by Mike Godfrey, Tax-News.com, Washington

14 May 2010


The newly elected president of Costa Rica, 51 year old Laura Chinchilla Miranda, has an ambitious agenda to combat crime, for which she needs to increase revenues by introducing a 5% tax on casinos and online gambling earnings, with a target of raking in an extra 1% of GDP in tax revenue.

According to the Economist, the Costa Rican government collects a mere 14.8% of GDP in taxes, and its most recent annual deficit was 4% of GDP.

In the last fifteen years Costa Rica has been an important place to conduct E-commerce, especially in the e-gaming sector. Companies, even when not incorporated in Costa Rica, are permitted to operate e-gaming websites under an all-encompassing, simple data processing license. In addition, no tax is paid on foreign-sourced income. About 380 companies operate under such licenses, turning over hundreds of millions of dollars a year.

The likelihood that President Chinchilla can carry her program through has been brought into question, however, because she relies on a pact with the Libertarian Movement leader, Otto Guevara, to get legislation passed and Guevara has pledged to filibuster any tax increases.

Many previous attempts to tax this sector have failed, and Costa Rica's main North American market is already threatened by initiatives in the US and Canada to bring e-gaming back home.

A comprehensive report in our Intelligence Report series examining the new possibilities that offshore e-commerce open up for business, and analysing the offshore jurisdictions that have led the way in offering professional e-commerce regimes for international business, with a particular focus on e-gaming, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report6.asp
TAGS: tax | business | commerce | law | internet | e-commerce | gambling | Costa Rica

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 »