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  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/14/2012

Costa Rica - Withholding exemption on dividends, interest, royalties repealed 

December 14: An exemption from withholding tax on payments of dividends, interest, commissions, royalties, reinsurance and insurance premiums, and other amounts in certain circumstances has been repealed.

The withholding tax exemption was available for payments of certain types of income when subject to tax in the recipient’s country of residence (i.e., a tax similar to one that would apply in Costa Rica) and when the recipient was not entitled to a foreign tax credit to compensate for the income tax paid in Costa Rica.


Law No. 9104, published 11 December 2012, provides for the repeal of the withholding tax exemption.


Read a December 2012 report [PDF 26 KB] prepared by the KPMG member firm in Costa Rica: Article 61 of the Income Tax Law is repealed




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