Accounting expert Luis Chacón, from the legal firm BLP, doubts that the Finance Ministry has the means to collect worldwide income tax to Costa Rican tax residents.
Chacón added that the Finance Ministry recognized the difficulties to tackle tax evasion on revenues generated within Costa Rica.
This recognition has prompted the government to request that the Legislative Assembly to approve a bill to fight fiscal fraud.
Last year, the Comptroller’s Office revealed that 55 percent of self-employed professionals did not pay income tax.
Chacón noted that countries with worldwide income tax are usually capital exporters, but Costa Rica isn’t.
Taxing worldwide income would eliminate Costa Rica’s advantage to foreign investors, who currently only have to declare and pay taxes on revenues generated within the country.
Source: CRhoy.com .