Costa Rica’s Tax Authority publishes new Income Tax Law Regulation

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EY Global

6 Jan 2022
Subject Tax Alert
Categories Corporate Tax
Jurisdictions Costa Rica

Taxpayers should follow the provisions in the decree as it replaces the previous Income Tax Law Regulation.

Costa Rica’s Tax Authority published Executive Decree No. 43198-H (new Income Tax Law Regulation), which incorporates the provisions enacted as part of the tax reform in 2018 into the Income Tax Law. It also includes provisions from the previous Income Tax Law Regulation that still apply.

The new decree renumbers the articles of the previous Income Tax Law Regulation and amends Article 12 bis (now Article 18) on non-deductible expenses, Article 3 quarter (now article 6) on the taxation of movable capital, Article 22 (now Article 30) on withholding taxes and Transitory Disposition Nos. I, II and VII.

This decree went into effect on 17 December 2020 and repealed Executive Decree No. 18445-H (the previous Income Tax Law Regulation).


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

Ernst & Young, S.A., San José, Costa Rica
  • Rafael Sayagués
  • Randall Oquendo
  • Daniel Quesada
Ernst & Young LLP (United States), Latin American Business Center, New York
  • Ana Mingramm
  • Lucas Moreno
  • Pablo Wejcman
  • Enrique Perez Grovas
Ernst & Young Abogados, Latin America Business Center, Madrid
  • Jaime Vargas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo
  • Luis Coronado, Singapore

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