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Guanacaste, Costa Rica by Joseph Emanuelli

Real information and stories from Guanacaste , Costa Rica. Presneted by a long time expat living and working in Costa Rica
Playa Hermosa, Guanacaste, Costa Rica. Deadline to pay Costa Rica income tax is next Monday.

Hello from “chilly” Peoria, AZ. Yes I am still in the states and for me 500 F is cold. I can’t wait to get back to that warm 88OF that I am used to.

Anyway in Costa Rica it is time to file your personal income tax if you worked here and made income.  This also means if you have an active corporation and have taken in some form of income, you need to file a tax return. Below is a short article for one of the papers. One of the reasons I decided to relocate was the low tax rates. I am not opposed to paying taxes, but I do not like to give 50% of it away especially since most governments’ just waste too much money, not to mention the corruption as well, which I will not go into as it is in every country. I happily pay my CR taxes on time. I utilize a personal accountant to take care of this for me and his fees are unbelievably low. Because of my type of business, real estate broker, I also have to file a form every month. My total expense for my accountant for the whole year is about $800.00 USD which is deductible as well. This even includes his services for putting together a certified CPA profit and loss statement for when I have to file my US taxes. That’s right you read that correctly, even though I do not live in the US any longer I still have to file US tax forms and pay US taxes. The good thing is as an expat I get an exclusion on a good part of the income I make off shore as a expat not living and working in the US.

“Some 400,000 Costa Rican taxpayers have until Monday, Dec. 17, to file and pay mandatory income tax. The deadline was set for Saturday, Dec. 15, but because it is not a business day it was moved to the following Monday. Tax Administration Director Carlos Vargas said the declaration must be submitted by all persons or companies with economic activities conducted in the country from Oct. 1, 2011, to Sept. 30 of this year. Tax Administration officials expect to raise more than ₡755 billion ($1.5 billion). President Laura Chinchilla signed a law that reduced or eliminated, in some cases, payment of income tax on the pensions of some 40,000 retired teachers. It saves retirees an average of ₡65,000 ($130). The new law also benefits some 14,000 workers earning less than ₡615,000 ($1,230) a month, since it states that all people having income below that amount are exempt from paying the tax. Those exceeding the limit must pay between 12 and 16 percent on the excess. To file declarations, taxpayers must download the Finance Ministry’s free EDDI-7 software (Windows only) from their website and complete the forms digitally. Those who do not submit the return on time are subject to fines of up to ₡180,000 ($360).”

All in all, you have to love the tax structure of Costa Rica. Yes it is true, you read about taxes going up in Costa Rica, well this is happening worldwide so you just need to deal with it. There are really only 2 things in this world you have to do once you are born, 1st pay taxes and 2nd die. It is a hard cold fact but what can you do about it? You might as well deal with in a nice warm place where the taxes are tolerable and people are great and beauty just abounds.

 As always, thanks for stopping by my blog. I hope you enjoy some of my rants, craziness and even some good information, if you want to make a comment just send me an email to jaaechef@gmail.com , my personal email address or post it here. If you have an interest in or are just curious about Costa Rica and the possibility of owning your own piece of Paradise just click this link and have a look around.

 http://www.costarican-american-connection.com/Featured_Listings/page_2527088.html

I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!

Posted: Tuesday, December 11, 2012 12:21 PM by Joseph A. Emanuelli

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