12 December 2023 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.
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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. 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 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. Document ID: 2023-2051 |
