Central America and the Caribbean: Legislative, administrative, and judicial tax developments (June 2026)

Various government agencies and tax authorities during June 2026 reported tax, regulatory, and court developments affecting taxpayers across the region.

Costa Rica

• A bill titled “Protection of Taxpayers and Repeal of Taxes,” published on June 8, 2026, would simplify the tax system through digitalization measures, taxpayer protection provisions, and the repeal of 35 taxes, fees, and stamp duties.
• An amendment to Law No. 7786 became effective following publication on June 19, 2026, introducing registration, due diligence, information-sharing, and penalty provisions for virtual asset service providers.
• A proposed amendment to Article 22 of the Tax Procedure Regulations would require taxpayers to register telephone numbers associated with electronic payment methods used in their business activities, including the national electronic payment system (SINPE Móvil).
• The General Directorate of Taxation issued guidance confirming that certain free trade zone processing companies may apply preferential income tax treatment to domestic market sales without applying the apportionment mechanism under Article 22 of the free trade zone regime law.
• The General Directorate of Taxation also confirmed that shares acquired before July 1, 2019, may qualify for the special 2.25% rate applicable to a first transfer, even when extraordinary capital contributions were made after acquisition without issuance of new shares.

Dominican Republic

• Law No. 30-26 introduced tax reform measures affecting capital gains on real estate, inheritance and gift taxation, corporate income tax, withholding taxes, international payments, tax procedures, and a temporary tax amnesty.
• The General Agency for Internal Taxes (DGII) established installment payment procedures for the special contribution applicable to integrated solid waste management.
• The DGII indexed selective consumption tax amounts applicable to cigarettes and alcoholic beverages for the July through September 2026 period.
• Public consultations were opened on proposed relief from withholding obligations for electronic invoicing issuers and on amendments to rules governing temporary transit license plates.
• The DGII also published an implementation schedule for Law No. 30-26.
• The Administrative Superior Court held that clerical errors in tax returns do not eliminate the tax consequences arising from information reported by taxpayers.
• The Administrative Superior Court also held that the DGII may verify tax credits before authorizing their offset against other tax liabilities.

Honduras

• Decree No. 78-2026 extended tax amnesty programs covering national taxes, social security obligations, and municipal taxes, providing relief from fines, penalties, surcharges, and interest for qualifying taxpayers that regularize outstanding obligations within the prescribed periods.

Panama

• Resolution No. 201-4247 adopted Form 930 Version 3 for transfer pricing reporting beginning with tax year 2026, adding new schedules covering financial information, related-party information, and fixed assets (read TaxNewsFlash).
• Executive Decree No. 25 amended the definition of controlling persons for FATCA and CRS purposes, including a 10% ownership or control threshold and expanded beneficial ownership identification requirements for legal entities and legal arrangements (read TaxNewsFlash).
• The Tax Administrative Court held that filing a request for nonapplication for the alternative calculation method for income tax (CAIR) does not suspend or interrupt the statute of limitations for tax collection purposes.

Read a June 2026 report prepared by the KPMG member firm in Costa Rica