Costa Rica News – The cost of living in Costa Rica is not that much less than the average cost of living in the USA. For those working down here you can also now look forward to paying about the same in income taxes. Income taxes in the USA is $0 to $35,350 a year is 15%. In Costa Rica from $0 to $17,150 a year is tax free, $17,150 to $25,700 a year is a 10% tax, and anything over $25,700 is taxed at 15%.
Decree also updates the annual tax credit for child is $32 for a spouse, to $48
When both spouses are taxpayers, only one may apply the credits.
Furthermore, Taxation states that the credit applies to the spouse as long as there is no legal separation. Credits for governing children if they are minors, are unable to provide their own sustenance because physical or mental disability, or if studies are higher, provided they are not older than 25 years.
The salary that serves as a reference for the taxation is the gross, without tax rebates and social charges.
Directorate General of Taxation considers taxpayers of this tax on natural or legal persons, public or private, carrying out activities in the country or for-profit businesses.
From the period 2011, the taxpayers of income tax are required to use the aid program EDDI-7 to prepare the statement.
This document and the tax payment must be made within two months and 15 days after the end of the fiscal period. This period is from the 1st of October to the 15th December.
If you need help with filing your taxes in Costa Rica and need an English speaking CPA, WE recommend the following CPA.
Robert L. Pioso, CPA, with 20 years of experience as a CPA, CFO and owner of a Costa Rican business can help you navigate through the complexities of US taxation for US expats and those who own investments and assets in Costa Rica. You can contact him for a free consultation – CR 6050-3831 or US 312-235-2301 or visit him at www.richcoastaccounting.com or email [email protected]. Rich Coast Accounting and Financial Services are focused at providing positive and tangible results that will bring real value to you or your business and offers a unique guaranty “You pay only for the value of the services received or the invoice, whichever is less.”