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Costa Rica: Domestic Corporate Taxation

Income Tax Rates

The income tax rates payable by a business are set out in Article 15 of the Income Tax Law.

There are 4 business income tax rates, the rate payable varying according to the level of gross income. The 4 rates (in 2012) are:

  • Full tax exemption for a predetermined period for all businesses operating under the free trade zone legislation;
  • 10% tax for a business whose gross income is less than USD91,000;
  • 20% tax for a business whose gross income is more than USD91,000 but less than USD183,000;
  • 30% tax for a business whose gross income is more than USD183,000.

Companies are subject to a further 10% tax on any brought-forward losses or investment allowances that are used to reduce chargeable income.

Local authorities levy an annual business license tax on all businesses engaged in profitable activities in their territory. This tax is paid quarterly, varies according to the nature of the business and is based on the previous year's net taxable income. The amount depends on the costs incurred by the local authorities in running basic services such as street lighting and rubbish collection.



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