American Expatriate Costa Rica

Illegal tax retention for restaurants

Last week, the Cámara Costarricense de Restaurantes y Afines (CACORE) presented an appeal before the Tribunal Contencioso Administrativo. The complaint was against the Ministry of Finance. They believe there is an illegal tax retention when electronic operations are made.

According to the claim, the amount the institution charges (1,77% out of the amount) is illegal, because it is based on the total amount clients pay in a restaurant and that quantity also includes tips for waiters.

Recently, the Ministry of Finance recognized that the retentions obtained from credit and debit cards have meant an increase in the income tax earnings and year-by-year growth.

This retention is not applied to taxpayers under the Simplified Regime: fuel fees, paid public transportation and to those who don’t have to pay the income partial payment.

crhoy.com