President Carlos Alvarado, will travel this Sunday to Mexico City for an official visit. This Wednesday the President announced that this Sunday he will go to the Aztec nation to meet with President Andrés Manuel López Obrador, known as AMLO, on October 21st.
Alvarado said that the issues on the agenda between the two will be migratory flows in Central America and Mexico and commercial issues.
From January 2020, the agreement between Mexico and Costa Rica will come into effect to avoid double taxation and prevent tax evasion in terms of income taxes.
According to the Foreign Trade Promoter (Procomer) the agreement includes special tax conditions for commercial transactions made by taxpayers of these two countries. Within the established conditions, a withholding of 5% is included for the distribution of dividends (when the participation exceeds 20% of the share capital), 10% for royalties, 10% for interest payments, among others.
Mexico represents one of Costa Rica’s oldest trading partners, with which the country’s first Free Trade Agreement was signed in 1995. The country invested nearly $9 million in Mexico with about 216 Costa Rican companies operating in the market.
Alvarado will return to the country on Monday after the meeting with the Mexican President, Foreign Minister Manuel Ventura and the Minister of Culture, Silvie Durán.