A crucial time to redefine practices in the tourism industry ⋆ The Costa Rica News

After months of controversy over how to amend the situation, Costa Rica was finally left off the list of non-cooperative countries in tax matters of the European Union.Minutes before 6:00 a.m. local time, the European Council published the official update to the list.

Regarding the country, they highlighted that the necessary legal adjustment was made. “Costa Rica was removed from the list because it has modified the harmful aspects of its foreign income exemption regime,” they point out.

 The discussion in the country included a special commission in the Legislative Assembly, a veto from the Government and constant communication with the counterpart.

 The Legislative Assembly approved a law reform to address the observations of the European bloc, which was partially vetoed by the president, Rodrigo Chaves, when he questioned changes included and which, he argues, benefit companies in the payment of taxes.

 After the debate and almost at the limit of the deadline to comply with the EU review, the Legislative Assembly achieved the reseal with 38 votes, the minimum required.

The list of controversy

The list of non-cooperative countries emerged in 2017. The European Union justifies that it is a global contribution to tax governance around the world, above all to avoid the erosion of the tax base and profit shifting.

 The EU Economic and Financial Affairs Council (Ecofīn) evaluates countries based on “fiscal transparency and fairness and the application of international standards.”This body is made up of the ministers of the European countries that are members of the bloc.

 Since 2020, an update has been made twice a year.  These generate two lists: I (with countries with problems, where Costa Rica was) and II (with countries in improvement processes).