The Costa Rican Tourism Institute Decrees a Moratorium for Companies With Regards To Payment of Taxes

A much-needed relief for this hard-hit sector

A tax moratorium related to taxes of $ 15 and 5% for touristic companies that submit non-payment requests to the Costa Rican Tourism Institute (ICT) due to liquidity problems, has been decreed. Also, administrative charges and judicial receivables are postponed for three months for March, April, May, and June. They will have a term to make the payment of the due until November 30, 2020, term in which, they will not have to pay tax interests, nor will administrative or judicial collection processes be carried out.

The decision is made in the context of the unprecedented health and economic crisis resulting from COVID-19. This resolution was finalized this Tuesday with the agreement by the Board of Directors SJD-092-2020. The ICT charges a 5% tax for the sale of each air ticket that originates in Costa Rica for international travel. The other 5% tax applies to the purchase of tickets whose destination is our country. Also, the charge of $ 15 for each tourist who enters by air and who provides the budget content to the ICT.

“Aware of the zero-income season that will last for at least three months in the tourism sector, the Board of Directors of the Institution approved these measures to help alleviate the overwhelming blow of this crisis to the Costa Rican tourism sector and the country,” said María Amalia Revelo, Minister of Tourism and Executive President of the ICT.

She added that “the seven members of the Board of Directors are clear about the situation facing the tourism sector and we know that companies will have problems with lack of liquidity and therefore a decrease in their ability to pay and meet their expenditures.”

The minister also pointed out that the Board of Directors took these “measures to support those companies that for years have fulfilled their tax obligations with the ICT, allowing with their contributions, for the Institution to grow in its tourism development programs in our country”.

Moratorium statement.

It is a requirement to grant the moratorium that companies be up to date with their payments to the Costa Rican Social Security Fund and the Ministry of Finance as of February 29, 2020.

Tax returns must be filed for the periods mentioned. Companies that do not qualify according to the above, have the possibility of requesting payment arrangements with the ICT.

Other measures.

For the companies that maintain other types of payment arrangements with the Institution, it was agreed to postpone these payments of the four installments corresponding to March, April, May, and June, without these accruing late interest, nor any administrative and judicial collection management. These four installments will be canceled in order every month, starting from the final date established in the payment arrangement formalized with the Institution.

As part of the agreement, the Board of Directors may extend the postponements and the moratoriums approved, as deemed appropriate, taking into account the national economic reality as a consequence of the effects of the COVID-19 pandemic and justifying it in a reasoned manner.

Companies that are in this situation or want to expand details for monitoring a particular situation can contact the ICT entry area: phones 2299-5902 / 2299-5892 / 2299-5893 or email [email protected].