Costa Rica: Tax incentives for film industry; tax audit plan for 2022
Incentives intended to promote the investment in and development of international film productions and activities in Costa Rica
Tax audit plan for 2022
Law no. 10071 (published in the official gazette on 13 December 2021) includes incentives that are intended to promote the investment in and development of international film productions and activities in Costa Rica.
Among the incentives (for film or audiovisual investment projects approved by the Costa Rica Foreign Trade Corporation (PROCOMER)) are the following:
- An exemption from income tax for certain payments made to personnel
- A suspension of all import taxes (and from the requirements for a guarantee deposit) with regard to the temporary import of equipment and spare parts for film and audiovisual projects
- An exemption from all import taxes with regard to tools, clothing, makeup, scenery, and technical material required for the project
- A refund of 90% of the total amount of the value added tax (VAT) with regard to the purchase of goods and services that are directly related to the project if the total exceeds an amount equal to U.S. $ 500,000
Tax audit plan for 2022
Resolution DGT-R-34-2021 (published in the official gazette on 13 December 2021) sets forth the tax administration’s audit plan for 2022. According to the audit plan, taxpayers in the following sectors or concerned with the following economic activities may be identified for a tax audit:
- 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
Read a December 2021 report prepared by the KPMG member firm in Costa Rica
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