Costa Rica

Individual - Tax administration

Last reviewed - 27 February 2024

Taxable period

With the new Law, the fiscal period will match the calendar year, but there will be special cases in which the taxpayers may request the approval of a fiscal period different than the calendar year.

Tax returns

Only self-employed individuals who receive commissions, fees, royalties, or other forms of income for services rendered, and those who receive interest or rental income from local sources must file a tax return. If both spouses earn income, they must submit individual returns, in which case the personal child credit can be credited by only one of the spouses. The present legislation does not contemplate joint filing.

Payment of tax

Employees who receive salaries and other similar or complementary remunerations or benefits must pay a monthly income tax that is withheld by the employer from the monthly payroll. Individuals do not need to file an annual tax return for this type of income.

Self-employed individuals are required to make instalments of estimated taxes, which are computed on the average of the last three fiscal years, and a final payment two and a half months after the end of the fiscal year.

The amounts paid can be treated as paid in account at the moment when the taxpayers file the income tax return to the tax authorities at the end of the fiscal period.