Costa Rica News – The “Hacienda” submitted a motion for a substitute text that would save small companies from paying value added tax on their rentals in the latest adjustments to the tax reform meant to help the critical situation of public finances.
Advisors from various parties filed motions against the tax plan. The Ministry of Finance presented its final version with a substitute text motion on Tuesday. It incorporates some of the variations of text brought to attention last Thursday.
One of the last minute changes would allow a greater amount of micro and small companies to be completely exempt from the 13% VAT on rent. While the previous version allowed the exemption for companies with income under ¢106 million, the latest version allows it for any company paying under ¢648,000 in monthly rent. To access the exemption, the companies must be registered with the Ministry of Economy, Industry and Trade or the Ministry of Agriculture and Livestock.
With this change and others taken from some of the 500 total motions, it is expected the plan will get the necessary five out of nine votes to become official next week at the Special Commission for Fiscal Reform.
