October 2, 2023 Costa Rica enacts law making reforms to achieve exclusion from EU's list of non-cooperative jurisdictions in tax matters
On 02 October 2023, Law No. 10.381, which aims to incorporate amendments to the Income Tax Law necessary to achieve Costa Rica's removal from the European Union's (EU's) list of non-cooperative jurisdictions in tax matters, was published in the Official Gazette. Background On 26 September 2023, the Costa Rican Congress, with 38 votes in favor, overturned the partial veto announced by the President of the Republic of Legislative Decree No. 10.381 (Bill No. 23.581), which aims to incorporate amendments to the Income Tax Law necessary to achieve Costa Rica's removal from the European Union's (EU's) list of non-cooperative jurisdictions in tax matters. For background on the President's partial veto, see Global Tax Alert, Costa Rican President partially vetoes law aimed at making reforms to achieve exclusion from EU list of non-cooperative jurisdictions in tax matters, dated 20 September 2023. Next steps The law came into force on 02 October 2023, following its publication in the Official Gazette. The Executive Branch has three months in which to issue the relevant regulations. Furthermore, the European Union will conduct its next review of Annex I of the list of non-cooperative jurisdictions for tax purposes in October 2023 and determine whether, after the approved reforms are made, Costa Rica will be excluded from the EU's list of non-cooperative jurisdictions in tax matters. For more information on the amendments to the Income Tax Law, refer to Global Tax Alert, Costa Rican Congress approves bill to achieve exclusion from the European Union's list of non-cooperative jurisdictions in tax matters, dated 12 September 2023. ——————————————— For additional information with respect to this Alert, please contact the following: Ernst & Young, Costa Rica
Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor | ||||
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