BLP advised the seller, Grupo Orbis (Pintuco), on this regionally impactful transaction employing attorneys from each of our offices in Costa Rica, Nicaragua, Honduras, El Salvador, and Guatemala, as well as coordinating with lawyers in Panama. Besides conducting due diligence in the jurisdictions of Central America, BLP also analyzed the competition in each of the countries and if required…
Tag Archives: Tax
The General Directorate of Taxation of Costa Rica has issued a communication that establishes the classification criteria to qualify as a Large Taxpayer (Resolution of the General Directorate of Taxation No. DGT-R-22-2021 Taxpayers who meet any of the following qualifications will be under the jurisdiction of the Directorate of Large National Taxpayers: Paid average taxes…
On Friday, December 25, Central America observes the feast of the nativity of Jesus Christ, which entails the enjoyment of a holiday regulated in the region as follows: Guatemala: The holiday is a mandatory pay date, applicable to 12 hours on December 24 and all day on December 25. An employee who works from noon…
By resolution DGT-R-38-2020, the General Directorate of Taxation determined that inactive entities registered before the Tax Administration under the economic activity code 960113, “legal entities constituted in the country that do not develop economic activity from a Costa Rican source”, must file an Income Tax Return using form D-101. The information to be submitted must include…
Are you aware of the formal tax obligation of inactive companies in Costa Rica? Below, we detail this obligation and suggest how to comply with it in time to avoid sanctions. What is this new tax compliance about? The formal obligation consists of filing declaration D.135 called, Asset Declaration for Inactive Legal Persons. Who must…
Law that suspends VAT charge on construction services enters into force On September 16, 2020, Law N°9887, which suspends the Value-Added Tax on engineering, architecture, topography, and construction services for civil works until August 31, 2021, entered into force. Moreover, for the years 2021 and 2022, the law reduces the VAT charge to 4% and…
Yesterday, the Legislative Assembly approved in first debate two bills of law intending to extend the VAT exoneration applicable to tourism and construction services. Regarding tourism services, the bill proposes that during the first two years of the entry into force of the Strengthening of the Public Finances Law (until June 30th, 2021), tourism services…
In view of the actions taken by the Government the previous week on the grounds of COVID-19, the Ministry of Treasury issued a statement by which determined that taxpayers will be able to file tax returns with deadline on July 15th, until July 20th, 2020, without fines or penalties. It should be noted that within…
Starting on August 1, 2020, cross-border digital services will be subject to a 13% VAT in Costa Rica. This tax will be calculated on the gross amount of any purchase of international services or intangible goods made through the internet or other digital platform and consumed in the national territory. The Tax Authorities by resolution No….
The Ministry of Treasury clarified the application of the VAT exemption in commercial leases, during the months of April, May and June 2020 determined in the Tax Relief Law in face of the COVID-19, establishing that such exemption is applicable for both, real state and movable property, the latter of tangible or intangible nature. At…