The amendment will be effective after it is signed by the president and following its publication in the official gazette.
Deduction of input tax
The change will allow taxpayers to deduct from their general sales tax liability the input tax paid on the purchase of packaging materials, machinery and equipment, electric energy and any other merchandise used in the production, commercialization and distribution of tax or exempt goods.
With this change, the ability to deduct input tax from the general sales tax liability no longer requires that the goods purchased must be incorporated into the goods that are sold. It also extends the ability to deduct the input tax from the general sales tax liability for taxpayers that engage in commerce and distribution.
Tax information exchange agreements
Costa Rica has ratified an international agreement for mutual assistance in tax matters, with publication of the agreement in the official gazette La Gaceta.
Costa Rica already had signed (or had in effect) other agreements that allow for the exchange of information with Argentina, Australia, Canada, Denmark, the Faroe Islands, Finland, Greenland, Iceland, Mexico, the Netherlands, Norway, South Africa, Sweden, and the United States.
Costa Rica’s income tax treaty with Spain and another separate agreement with Central American countries (Guatemala, Honduras, El Salvador, and Nicaragua) also expanded Costa Rica’s network for the exchange of tax information.