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Costa Rica Announces Plans to Overcome Fiscal Impact of the COVID-19 Pandemic

21 September 2020

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Proposed Changes

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Costa Rica

Costa Rica's Ministry of Finance has issued a release announcing plans to cover the fiscal impact of the COVID-19 pandemic as part of negotiations with the IMF to obtain financing of USD 1.75 billion. Tax measures highlighted in the release include: A reduction in social security contributions for companies by at least 5% over four years; The introduction of a tax on banking and securities transactions for a period four years, which is to be imposed at a rate of 0.3% for the first two years, followed by a reduction in the rate to 0.2%; The introduction of an extraordinary...