Costa Rica: Legislative Assembly overrides veto of bill on taxation of passive income
Legislative Assembly voted to override a partial presidential veto of Bill No. 23.581 to reform income taxation of passive income from foreign sources
Legislative Assembly overrides veto of bill on taxation of passive income
The Legislative Assembly on 26 September 2023 voted to override a partial presidential veto of Bill No. 23.581 to reform the income taxation of passive income from foreign sources, and thereby address the exclusion of Costa Rica as a non-cooperating jurisdiction before the EU.
The bill was previously approved in second debate by the Legislative Assembly. Read TaxNewsFlash
Following a partial presidential veto of the bill, a qualified majority of the Congress (38 votes in favor and 15 against) voted for the bill to be “resealed.”
The bill introduces—effective 1 January 2024—a 15% tax on passive income (expressly from dividends, interest, capital gains and royalties), subject to allowances for foreign credit taxes from assets located or rights economically used outside the national territory.
Read a September 2023 report (Spanish and English) [PDF 468 KB] prepared by the KPMG member firm in Costa Rica
Read an October 2023 report (Spanish and English) [PDF 374 KB] prepared by the KPMG member firm in Costa Rica
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