Investors and Businesses in Costa Rica to Benefit from New Tax

The Costa Rican tax administration has introduced a new special accelerated depreciation for all new assets increasing the acceleration of the useful life to 60%from the previous 50%

This measure applies to all new assets purchased from January 2009 to the end of the year.

This move is a part of the Costa Rican Government's plan to promote Commerce, protect the Costa Rican economy from the worst of the global economic downturn and to protect Costa Rican jobs.

This accelerated depreciation will promote investment in Costa Rica as it allows companies a larger deduction against income tax is due. Additionally, those companies who had considered deferring asset purchases because of the current economic climate will benefit financially by proceeding with the purchases in 2009.

Once this resolution is published in “La Gaceta” it will not be necessary for companies to specifically request authorization to use the special accelerated depreciation from the Tax Administration. The only requirement is that the owner proves that the assets were acquired during 2009.

James Cahill, Managing Director of Costa Rica Invest, commented that “the proactive measures introduced by the Costa Rican taxation authorities will help to protect Costa Rica from the worst effects of the current global economic slowdown, and shows the Costa Rican governments continuing support of commerce and investment in Costa Rica.”