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Originally Posted by ricks
Most countries in Latin America tax world wide income. I can only think of Panama and Belize which still tax on a territorial basis.
The Carribean nations mainly tax on a territorial basis, and many European countries as well.
My point being, why risk it now operating in Costa Rica when there are so many alternatives?
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With Panama south of Costa Rica and Nicaragua north and where both of these countries don't tax worldwide income, Costa Rica is obviously going to feel the pinch if only because they just lost a fair amount of cash being injected into the local economy and will lose any aspect of offshore biz that they did have. (Not that CR is an actual real offshore)
Can't remember em all, but Guatemala, Paraguay, Uruguay and Bolivia have the same tax system as Costa Rica has now.
A fair number of Caribbean countries rely ecomomically in being "offshore" where no local taxes apply. Many would go bust if they never offered offshore services. We have facilities in a few of the islands and sure would not be there if there were taxes applicable.
Agree.. there are plenty choices. For IWantU, simply move across the border to Panama. I'm sure they will not be alone in this.
Bottom line.. tho never checked, you can bet the motivator behind this action is not the Costa Rica govt, but the OECD, - everyone's favorite financial advisor where it ends up costing all round.
