Law No. 9635, which recently was approved and published in the Costa Rican Official Gazette, provides major tax reform. Among other tax measures, the Law replaces the existing sales tax with a new value-added tax (VAT) and introduces a new capital gains tax on the transfer of shares in Costa Rican companies. The entry into force of the provisions in this Law varies, but most occur on July 1, 2019.
Multinational entities (MNEs) with current or planned operations in Costa Rica should consider how they might be impacted by the new VAT and capital gains tax on share transfers. MNEs still have time to assess that impact and respond, since generally most provisions do not enter into force until July 1, 2019.