The Ministry of Finance states that from January 1^st, 2022, the VII amendment of the WCO Harmonized System will be implemented at the national level.

Through Executive Decree Number 43258-COMEX, it was published the resolution Number 450-2021 (COMIECO-EX) of July 22^nd of 2021 and the annexes called “Annex 1: Central American Tariff System” and “Annex 2: Panama”. This document was published in the official Gazette last November 19^th.

This implementation is carried out because every five years the WCO conducts a review and issues recommendations to update; eliminate, incorporate or modify existing tariff rates to adapt to technological advances, new product flows, and other requirements of international trade.

Furthermore, the harmonized system is used by the member countries of the WCO to classify and uniformly identify merchandise traded internationally.

In this specific case, through amendment VII, the following modifications are established:

-        Creation of specific games for 3D printers, multipurpose drones, and electronic/electrical waste.

-        Tariff classification for goods such as new tobacco and nicotine products, rapid virus diagnosis kits, dual-use goods, chemicals with global warming potential; regulated by their social and environmental impact.

Through the Ministry of Finance’s portal, the Tax Authorities announces that by December 31^st is the deadline for making the third quarterly advance payment at the latest.

The cancellation of the corresponding amount can be made by different means enabled for this purpose, such as a Real-Time Debit (DTR by its initials in Spanish) *, through connectivity, using your bank account, through the website of the authorized financial institution of your preference, or by appearing at the boxes of these entities indicating the corresponding ID number.

It is important to consider the provisions to carry out these obligations and thus avoid penalties.

Law number 10071 "Attraction of Cinematographic Investments" was published in the Official Gazette on December 13^th of the current year.

The purpose of this law is to promote investment and development of international film productions, co-productions, and activities in Costa Rica, as a source of economic generation, productive chains, creation of ventures, and hiring of national human talent.

Through this, benefits and incentives will be granted that will allow our country to be competitive in attracting the film industry to carry out large productions in the national territory.

Specifically, those natural or legal persons not domiciled in Costa Rica will benefit - as producers or co-producers with national individuals or legal entities - who carry out film or audiovisual investment projects duly approved by the Costa Rica Foreign Trade Corporation (PROCOMER), for the following incentives:

-        Exemption from income tax on dependent or independent personal work and of withholdings for remittances abroad of foreign personnel for payments to all those workers necessary for the development of the project; provided that said payments are not made with funds from a Costa Rican source.

-        Temporary importation of equipment and spare parts for film and audiovisual production within the territory with a suspension of all import taxes, as well as exemption from guarantee deposit.

-        Exemption from all import taxes, levies, fees, or contributions that fall on tools, clothing, makeup, scenery, and technical material that are required to carry out the project.

-        Refund of ninety percent (90%) of the total amount of the Value Added Tax - canceled on purchases - when the beneficiary makes purchases of goods and services in Costa Rica directly related to the project, which exceed an amount of US $ 500.00 00 (five hundred thousand dollars).

Through resolution DGT-R-34-2021 "Resolution on economic sectors and activities to be included as criteria for the selection of taxpayers in the Annual Audit Plan", published on December 13, in the Official Gazette Number 239, it is stated that the Supervision Directorate of the General Tax Directorate may select for auditing in 2022 those entities  comprised within the following sectors and economic activities defined according to the International Standard Industrial Classification (ISIC):

—   Agriculture, livestock, hunting, fishing, and forestry.

—   Exploitation of Mines and Quarries.

—   Manufacturing industries.

—   Supply of electricity, gas, and water.

—   Construction.

—   Wholesale and Retail.

—   Transportation and Storage.

—   Hotels and restaurants.

—   Private households with domestic service.

—   Extraterritorial organizations and bodies.

—   Other community, social, and personal service activities.

—   Betting, gambling, casino, and slot machine operation centers.

—   Information and communications.

—   Financial intermediation and insurance.

—   Real estate, rental, and business activities.

—   Professional, scientific and technical activities.

—   Administrative and support services activities.

—   Public administration and defense; compulsory social security.

—   Teaching.

—   Human health and social assistance activities.

Additionally, it is mentioned that it is possible to audit those taxpayers delimited by the different criteria established in the Regulation on Objective Criteria for the Selection of Taxpayers for Examination.

These provisions will be applicable as of January 1^st, 2022.