At the beginning of each tax period, the Ministry of Finance adjusts the income brackets to be applied in the new fiscal year.

Last December 7^th an Executive Decree was published on the Official Gazette, by virtue of which the new tax rates were established for fiscal year 2024, from January 1^st until December 31^st.

As reference, the current sales exchange rate is USD $1= CRC 533 colones.

First, tax brackets were updated for income tax on employees, retirees, and pensioners (commonly known as “salary tax”). Employers in general should take note of this information to continue in good standing before the Ministry of Finance, as they are jointly liable for any unreported and/or unpaid salary taxes of their employees.

For this category, the following tax rates will be applied:

For individuals or legal entities that have a lucrative activity (an active trade or business), the following rates will be applied for profit tax purposes:

Lastly, tax credit amounts concerning family members were also updated for individuals (whether employees or independents), so it will be possible for them to apply a monthly tax credit of CRC 1.730 (CRC 20.760 annually) per child, as well as a monthly amount of CRC 2.620 (CRC 31.440) for the spouse.

Please contact us if you are interested in this matter and you need legal advice on Costa Rican Tax Law. We will be happy to help and guide you every step of the way.