A domiciled individual, whether or not a national, whose only source of income is a salary for personal services cannot deduct business expenses.
In Costa Rica, personal allowances take the form of tax credits for the Company (see the Other tax credits and incentives section for more information).
Self-employed individuals whose source of income is from professional services (i.e. non-dependent work relationship), insurance brokerage, commissions (sales), fees, etc. may deduct up to 25% of the gross income as a deduction without itemising the expenses or may elect to itemize the expenses incurred in producing the income.