Costa Rica Independent Worker Law published in the Official Gazette

Local contact

EY Global

8 May 2023
Subject Tax Alert
Categories Mobility Tax
Jurisdictions Costa Rica
  • A new law establishes a four-year limitations period for the Costa Rican Social Security Fund to determine or collect social security contributions from independent workers and to impose penalties in cases of noncompliance.
  • Law No. 10.363 entered into force on 08 May 2023.

The new Independent Worker Law (Law) in Costa Rica and its conditions apply to independent workers (i.e., autonomous workers, self-employed persons or freelancers), understood as natural persons who carry out their work autonomously and without subordination to an employer. The term "independent workers" also includes those who work alone or in collaboration with other independent workers and may, or may not, provide a service to third parties.

One of the main provisions of the Law establishes a four-year statute of limitations for the Costa Rican Social Security Fund (in Spanish, "Caja Costarricense de Seguro Social," CCSS) to determine and collect social security contributions and penalties in cases of noncompliance.

However, this statute of limitations extends to 10 years in cases of independent workers who have not registered with the CCSS, have not complied with their formal obligations, or have submitted returns with the CCSS that the authorities classify as fraudulent.

Taxpayers who are involved in an ongoing administrative, sanctions or collection procedure must review the conditions of the Law to determine how the new conditions apply to their specific cases.

The Law entered into force after its publication in the Official Gazette on 08 May 2023.

For additional information with respect to this Alert, please contact the following:

Ernst & Young S.A., San José
  • Rafael Sayagues
  • Randall Oquendo
  • Daniel Quesada

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.