The training will help improve in tax compliance and the fight against evasion and fraud.
- A.M. Costa Rica illustrative photo -
Published Thursday, October 1, 2020
The U.S. government provides
tax training to Costa Rica
By the A.M. Costa Rica staff
The United States Department of the Treasury will provide training on tax issues, through the Office of Technical Assistance -OTA, to agents of the Costa Rican Ministry of Finance. This will help improve in tax compliance and the fight against evasion and fraud, the ministry said on Wednesday.
The agreement includes technical assistance to improve tax control, fight against tax evasion and improve collection provided by the OTA. With this agreement, the ministry seeks to implement legal measures, control, audits and the timely identification of cases of evasion and fraud, the ministry said.
"We need to work together on fiscal union and implementing best practices," Alejandra Hernández, representative of the Ministry said. Achieving more probity in the tax management is a goal of this government, she added.
According to Elian Villegas, Minister of the Finance, the U.S. Department of the Treasury, will provide advice on issues related to U.S. tax payments of U.S. citizens living in the country.
In August, Costa Rica and the United States signed a complementary agreement to the Foreign Account Tax Compliance Act, FATCA.
According to the ministry, this new agreement updates the Intergovernmental Agreement for the effectiveness of the Law on Tax Compliance regarding Foreign Accounts, signed by both parties in 2013.
The agreement enables the General Directorate of Taxation in Costa Rica and the Internal Revenue Service in the United States to share financial information in order to guarantee transparency in the banking transactions that U.S. citizens carry out in Costa Rica.
As of September, the agreement, signed by both the Minister of Finance Elian Villegas and Ambassador of the United States Sharon Day, allows the exchange of tax information between both countries.
According to the ministry, with the FATCA Act, the United States established the obligation to banks and financial companies in Costa Rica to provide information related to specific accounts and financial products of the U.S. citizens account holders that would be of interest for tax purposes.
Banks that do not comply with this report will be subject to a withholding tax of 30%, applicable on payments from the U.S. and designed for their clients, the ministry said.
"The signing of the FATCA agreement seeks to maintain the current standard of fiscal transparency established by the Organization for Economic Co-operation and Development, OECD, with respect to the exchange of information for fiscal purposes and mutual assistance," the ministry said in its statement.
What other agreements of exchanging information should be signed between the U.S. and Costa Rica? We would like to know your thoughts on this story. Send your comments to firstname.lastname@example.org