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Central America and the Caribbean: Tax developments in Costa Rica, Panama, Dominican Republic, and Honduras

Monthly report highlights recent tax developments in Costa Rica, Panama, Dominican Republic, and Honduras.

June 22, 2026

The KPMG member firm in Costa Rica prepared its monthly report for May 2026, covering the following tax developments in Central America and the Caribbean:

Costa Rica

  • The Legislative Assembly approved, in second debate, a reform to Law N°7786 to regulate and supervise virtual asset service providers.
  • The General Directorate of Taxation issued Private Letter Ruling MH-DGT-OF-0306-2026 to the inquiry submitted by the College of Private Accountants of Costa Rica, through which a formal opinion was requested on various situations related to the filing of the D-270 informative return (monthly summary informative return of clients, suppliers, and specific expenses not supported by an e-invoice).

Panama

  • Law No. 526 of May 28, 2026, introduces economic substance rules applicable to certain passive income from foreign sources, in line with international standards and the strengthening of the territoriality principle.
  • The General Directorate of Revenue (DGI) issued Resolution No. 201- 3068 of April 10, 2026, establishing the selection criteria and updates the registry of large taxpayers for fiscal year 2026.
  • The Tax Administrative Court invalidated the tax administration’s decision to reject an appeal as time-barred, when the tax authority itself had provided incorrect information regarding when the notification took effect and the calculation of the deadline to file the appeal.

Dominican Republic

  • The General Agency for Internal Taxes (DGII) issued a notice extending the deadline for the implementation of e-invoicing (May 15, 2026) applicable to small, micro, and unclassified taxpayers, by an additional six months, calculated from the originally established date.
  • The General Agency for Internal Taxes (DGII) published a notice containing the updated list of taxpayers holding official licenses for the production, manufacturing, and importation of alcohol, alcoholic beverages, and tobacco products, including the current status of each authorization.

Honduras

  • The Constitutional Chamber of the Supreme Court of Justice held that several provisions of Decree 113-2011, the "Law on Efficiency in Public Revenue and Expenditure," were unconstitutional.

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