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Foreign investors concerned about plans to tax free-zone companies. Cash needed to pay for government programs

Friday, October 14, 2011

A tax overhaul currently under discussion in the Legislative Assembly is becoming a thorn in the side of Costa Rican policymakers.

Foreign investors say a legislative plan to tax free-zone companies would persuade businesses to take their investment abroad. Proponents of the plan, including President Laura Chinchilla, say new taxes on free-zone companies are needed to fund government programs.

On Monday, the Costa Rican Investment Promotion Agency organized a conference with directors of companies operating in Costa Rica’s free zone, including Panduit and Intel. Company heads said they are concerned about the proposed legislation.

Original source: Tico Times