Costa Rica Assembly Considers Bill to Provide Tax Incentives for Tourism Companies Due to Coronavirus

The Costa Rican Legislative Assembly July 30 accepted for consideration Bill No. 22118, providing tax incentives for tourism companies, due to the coronavirus pandemic. The bill includes measures to: 1) provide a VAT exemption for electricity services for up to 24 months; 2) allow companies investing in tourist capital to apply a 25 percent tax reduction on profits for seven years; 3) allow companies making additional investments in tourist capital to apply a 25 percent tax reduction on profits for five years; 4) allow companies making additional investments in specified locations to apply a 50 percent tax reduction on profits ...