Costa Rica Proposed Income Tax Reform Draft

On 11 March 2015, the Costa Rican Ministry of Finance released a public discussion draft of proposed legislation including a number of changes to the country's Income Tax Law. Some of the proposed changes include:

• Expansion of the tax base
• Changing the standard tax year from the 12 month period ending 30 September to the calendar year ending 31 December
• New thin capitalization rules
• Strengthened transfer pricing rules
• New capital gains tax at a standard rate of 15%
• New rules concerning corp…