The bill has the goal of reducing the expenses for taxes paid on rent of the store's buildings.
-A.M. Costa Rica wire services illustrative photo.















































































Published Thursday, August 13, 2020

Bill for tax exemption on
the rental of stores advances


 By the A.M. Costa Rica staff

The Permanent Commission on Economic Affairs of Congress approved bill No. 22045 entitled "Law of attention to tenants and landlords of commercial premises."

According to Congress, the bill has the goal of reducing the expenses for taxes paid on rent of the store's buildings.

"The crisis that Costa Rica is facing due to the covid-19 pandemic has caused the Legislative Assembly (Congress) and the Government to take a series of actions to protect workers, the productive sector, businessmen and the people who have remained unemployed due to the health measures that have had to be taken to safeguard life," said Roberto Thompson, the deputy who led the bill.

According to the government, the law allows the first step of mutual arrangement between the landlord and the tenant, as a first instance. If this arrangement is not possible, an extra period can be granted for the payment of the leases of commercial premises, seeking a balance between the parties.

The new law responds to exceptional and temporary measures, for which three months is established for the payment arrangement between the landlord and the tenant.

However, the recently approved Covid-19 Tax Relief law left out the exoneration of the Value Added Tax, known as IVA, for the payment of rent for commercial stores.

Due to this, it has been proposed to expand the exemption base for those tenants and landlords who are registered in the Single Tax Registry platform of the General Taxation Directorate, in the General Regime or the Special Agricultural Regime.

The bill was sent for consultation and publication in the official government newspaper La Gaceta.

It is expected that the deputies of Congress will give the final vote of approval of the bill within the next few days.



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