New Bill: Payment arrangement with the Ministry of Finance (VAT)
On October 5th, 2022, the Government of Costa Rica sent to the Legislative Assembly a Bill through which the Ministry of Finance intends to make payment arrangements with companies that are currently in arrears.
The Government’s initiative with this new Bill is to aid all those businesses that were affected during the COVID – 19 pandemic; many of them are facing the closure of their businesses due to delinquency in the payment of Value Added Tax. The purpose of this Bill is to support the companies most affected by the restrictions generated in the past by the pandemic.
At present it is illegal not to cancel the amount of VAT and causes sanctions such as the closing of the company. The objective of this Bill is that instead of sanctioning companies that are in arrears with the closing of their businesses, a fine equivalent to one fourth of a base salary will be granted. The project also makes it easier for these companies to make a payment arrangement with the Ministry of Finance to pay the outstanding VAT in installments and thus catch up.
President Rodrigo Chaves emphasized: “It is not that we are going to forgive them that money, but those (companies) that are already being able to leave, given the employment situation in this country and that we are seeing a little light at the end of the tunnel, why close them down? So, what this law says to the Legislative Assembly is to give the Treasury permission to sit down with these people and make them a payment arrangement, not a payment waiver.”
The bill was signed after the Governing Council and will be sent to the Legislative Assembly for its respective analysis.
Mariela Saborío
mariela.saborio@garciabodan.com
Associate
García & Bodán
Costa Rica