Costa Rica Wrangles Over Reforms


By Global Tax Weekly

Costa Rica, after more than a decade, is still trying to pass a major fiscal reform package designed to put the Government’s finances on a more assured footing. Granted, there are some controversial elements to the original proposals, including a switch from a territorial to a worldwide basis of taxation, and investors won’t like that. And overall, the package is meant to increase tax revenue as a share of the economy. But for taxpayers, and particularly for foreign investors, policy paralysis is just as bad as a situation where the rules are apt to change frequently, because it also breeds uncertainty and a lack of confidence in the government and the legislature. Perhaps indicative of this displeasure, the lack of a political consensus on the fiscal reforms earned Costa Rica a rebuke from Moody’s Investors Service earlier this month.


For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look





Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>



RELATED ARTICLES AND INFORMATION

Australia Announces Budget Measures

The Australian Government announced in its Budget that it would be bringing forward personal tax cuts that had been scheduled for 2022.

The Australian authorities...

UK Clarifies VAT Rules

In the UK, while things are gearing up to get more complicated on pretty much all fronts, the tax authority sought to provide clarity...

Australia Focussing On COVID-19 Compliance

In Australia, the ATO is highlighting non-compliance by some businesses with the rules regarding eligibility for providing JobKeeper payments.

The JobKeeper Payment scheme is a...