The government seeks to reform the income tax to make individuals and companies declare and pay taxes on revenues generated abroad.
According to deputy minister of revenue, Fernando Rodriguez, the government wants to include a provision on the income tax bill, which will require persons or companies with tax residency in Costa Rica to declare and pay tax on income obtained from abroad.
Tax residency status is given to persons or companies operating in the country for at least 183 days.
According to Rodriguez, double taxation would be averted because individuals or Companies could be exempt from paying taxes in Costa Rica if they already did in another country.
The official presented this proposal on Monday before the legislative committee investigating the “Panama Papers”.
Source: La Nación.