Costa Rica

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Tax authorities

Ministerio de Hacienda
Dirección General de Tributación
Avenida 2da, Calle 1 y 3, diagonal al Teatro Nacional
Tel: +506 2284-5162 / 2284-5174
Website: www.hacienda.go.cr/tributaciondirecta/

Tax rates at a glance

(As of September 2012)

Corporate income tax rate	30% (a)
Capital gains tax	0% 30% (b)
Branch tax	30%

Withholding tax
Dividends	15% 5% (c)
Interest	0% 15% (d)
Royalties	0% 25% (e)
Branch remittance tax	15% 5% (f)

Net operating losses (years)
Carryback
Carryforward	3/5 (e)

Lower rates apply to various bands of income.
Capital gains are exempted unless derived from the habitual activity of the seller (that is, the normal trade of business) or the assets sold are tangible and can be depreciated. Such gains are taxed at 30% (maximum rate).
A 15% withholding tax is levied on dividends paid to individual shareholders and 5% for dividends paid by stock corporations whose shares are registered on an officially recognised stock exchange.
The general withholding tax on interest is 15%, with a 0% rate applying to interest paid to “first rank” approved banks and financial institutions.
Royalties are subject to a 25% withholding tax. An exemption is available for royalties that are not credited by the payee’s country of residence.
Remittances from local branches to their non-resident parent companies are taxable in the same way as dividend distributions.
Industrial losses may be carried forward for three years (five years for agricultural losses). Capital losses are deductible only if a gain on the disposal is taxable in the current year.