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Costa Rica’s fiscal reform seen as mixed signal

Monday, October 3, 2011

Tax breaks for free-zone companies represent 30 percent of earnings made by the Costa Rican fiscal reform plan. Incentives for foreign companies amounted to $245 million last year.

The government’s reform proposal aims to impose a 15 percent tax on dividends from the free-zone companies and enable municipalities to charge on real estate.

Critics of the measures say they send a mixed signal to foreign investors that are accustomed to receive earnings free of tax in other countries.

Original source (in Spanish): La República