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December 12, 2023
2023-2051

Costa Rica's Tax Authority publishes income tax brackets for tax year 2024

  • New brackets have been published for corporate income, income from profitable activities and the salary tax.
  • The brackets will go into effect on 1 January 2024.

On 7 December 2023, Costa Rica's Tax Authority published Executive Decree No 44276-H, which contains the income tax brackets applicable for tax year 2024.

For companies with an annual gross income exceeding CRC1120,582,000 (US$226,555)2 the applicable corporate income tax rate will be 30%.

The following corporate income tax rates will apply to the income of companies with annual gross income of CRC120,582,000 or less:

Amount of income

Rate

Up to CRC5,687,000 (US$10,685)

5%

More than CRC5,687,000 (US$10,685) to CRC8,532,000 (US$16,030)

10%

More than CRC8,532,000 (US$16,030) to CRC11,376,000 (US$21,373)

15%

More than CRC11,376,000 (US$21,373)

20%

The following income tax rates will apply to the income obtained by individuals from profitable activities:

Amount of income

Rate

Up to CRC4,127,000 (US$7,754)

Exempt

More than CRC4,127,000 (US$7,754) to CRC6,164,000 (US$11,581)

10%

More than CRC6.164.000,00 (US$11,581) to CRC10,281,000 (US$19,316)

15%

More than CRC10,281,000 (US$19,316) to CRC20,605,000 (US$38,713)

20%

More than CRC20,605,000 (US$38,713)

25%

The following salary tax rates will apply:

Amount of income

Rate

Up to CRC929,000 (US$1,745)

Exempt

More than CRC929,000 (US$1,745) to CRC1,363,000 (US$2,560)

10%

More than CRC1,363,000 (US$2,560) to CRC2,392,000 (US$4,494)

15%

More than CRC2,392,000 (US$4,494) to CRC4,783,000 (US$8,986)

20%

More than CRC4,783,000 (US$8,986)

25%

The new tax brackets will be effective on 1 January 2024.

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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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ENDNOTES

1 CRC is the abbreviation for the Costa Rican colon.

2 The exchange rate used is the reference rate for sale at the Costa Rican Central Bank as of 8 December 2023: CRC532.24 per US$1.

 

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