Costa Rica News – With the new tax reform many heads of households wonder how much they will have to pay. Many were scared to hear the figure ¢121,000 but it turns out this is only for those making ¢3.4 million.
The tax will be based on income so those with fewer resources, say a salary of ¢140,700, will have to pay ¢1,800. Even though those in the lower income bracket only pay 1.28% of their monthly income, it will likely feel like a bigger deal to them as compared to someone paying 3.5% of ¢3.4 million.
Those with high incomes will be affected by VAT, salary tax increase, income tax on capital, increased tax on surpluses of associations and the introduction on the tax on capital gains, while those with lower incomes will only be affected by VAT, value added tax.
All of this means that about 80% of the reform will fall on the richest 20% of Costa Ricans. Tourists will also be affected. The hope is to increase tax revenues to generate at least 1.28% of the GDP.