The Costa Rica News (TCRN) – Deputy Otto Guevara Guth introduced the legislative bill No. 19,274, entitled: “Elimination of Tax on Dividends” which aims to repeal all tax dividends for any commercial companies and forms of company organization authorized by national legislation.
The profits generated by corporations are taxed with income tax. When these distributed dividends or similar contributions are taxed on dividends of 5 or 15%, depending on whether they have legal person shares that were quoted on the stock exchange.
Guevara says this is inconvenient, since it discourages the distribution of profits among partners, prevents the development of the capital market, and leads companies to seek alternative mechanisms to distribute dividends, including “dirty” financial statements.
“The dividend tax discourages the creation of new businesses and entrepreneurs, especially if the idea is to seek investment through equity placements within the Costa Rican public. Successful countries like Ireland have eliminated the tax on dividends, contributing to an increase in wages and an increase in productivity,” said Congressman Guevara Guth.
The Costa Rica News (TCRN)
San Jose, Costa Rica