Government proposes to create a new income tax

The government, thought the Ministry of Finance, presented a bill to the deputies of the Congress, for its analysis, to create a new income tax.

According to the ministry, the bill will apply a tax of 10% and up, to everyone who gets an approximate annual income of $13,403 or more.

However, the bill allows workers to reduce, of that annual income, a portion of their basic expenses such as house rent, medical expenses, among others.

According to the government, the bills for creating new taxes have the goal of stabilizing the country's economy.

Last week, the ministry presented to Congress another tax bill targeting Luxury home owners.


According to bill No.22382 "Tax on luxury properties" owners would pay an annual 0.5% tax for properties whose value is equal to or higher than approximately $245,379. That is a government measure to increase their income through taxes and face the economic and fiscal crisis in the country.

“This tax applies to every house, urban or rural located, that contains one or more buildings that constitute the property, used as a regular, occasional or recreational home, even if it is located on independent farms or in singular buildings,” stated in the bill text.

The new tax is exempted to homeowners if the property carries out productive activities such as agricultural, livestock, forestry, natural resource conservation, agro-industrial or commercial activities.

According to the ministry, the new tax will generate an income for the Housing Mortgage Bank of approximately $6.5 million. The bank is a public organization in charge of facilitating loans for the construction of houses.

The bank provides financing to public aid programs for the eradication of informal settlements, so-called “slums'' and donates houses to people living in poverty.

If Congress approves this bill, the luxury homes tax will replace the current one which had to be paid before Jan. 15 to avoid penalties.

These bills are expected to be approved or rejected by the deputies of Congress sometime this week.

Government new tax proposals are part of the requirements to reach an agreement with the International Monetary Fund, IMF, to obtain a loan of $1.7 billion.


---------------
How are new taxes considered a smart strategy to improve the economy and reduce the fiscal deficit?  We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

---

---

 

---