Monday, March 23, 2009

Costa Rica Business to benefit from New Tax Law

The Costa Rican tax administration has introduced a new special accelerated depreciation for all new assets increasing the acceleration of the useful life t0 60% from the previous 50%

This measure applies to all new assets purchased from January 2009 to the end of the year.

This move is a part of the Costa Rican Government's plan to promote Commerce, protect the Costa Rican economy from the worst of the global economic downturn and to protect Costa Rican jobs.

This accelerated depreciation should promote investment in Costa Rica as it allows companies a larger deduction when determining how much income tax is due. Additionally, those companies who had considered defering asset purchases because of the current economic climate would benefit financially by proceeding with the purchases in 2009.

Once this resolution is published in “La Gaceta” it will not be necessary for companies to specifically request authorization to use the special accelerated depreciation from the Tax Administration. The only requirement is that the owner prove that the assets were acquired during 2009.

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