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Costa Rica Proposed Withholding Tax on Credit and Debit Card Payments

09 July 2014

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Proposed Changes

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Costa Rica

On 23 June 2014, the Costa Rican tax administration published a discussion draft for the introduction of a withholding tax on credit and debit card payments. Under the proposed change, financial entities that process credit or debit card payments for goods or services would withhold 2% of the amount paid, credited, or otherwise made available. The tax withheld would be considered an advance income tax payment due by the beneficiary.