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ricks · 03-14-2006, 01:12 AM

Quote:

Originally Posted by Varius

Disclaimer: I'm no lawyer, so these are just my own thoughts (and not those of IwantU!):

1) Political corruption is still VERY strong here in Costa Rica. With the number of sportsbooks here and the cash going around, I think it's highly unlikely this will pass anytime soon or at all...

2) It's Costa Rica. Even if it does pass, it could take years to be enforced.

3) From that link, I think it's important to note this:

"However, foreign individuals living in Costa Rica who can prove that their income has already been taxed in another jurisdiction, or are able to show that income is to be invested in the country, would be exempt under recent amendments."

We are becoming ISO-certified as well as hoping to employ up to 140 local Costa Ricans by the end of this year (we're renovating a new building beside us as we speak to fit more employees) and doing things to keep the government happy here.

However, we shouldn't have any problems proving we've been taxed in, say, Panama - thus becoming exempt.

There are other loopholes that exist as well to avoid Costa Rican jurisdiction

So I for one, am not worried about it.

The sportsbooks have a special deal, maximum tax of $46k US per year. They are the only exempt companies as far as I know.

As far as being taxed in Panama, there would have to be a double tax treaty there and Panama dosent have any of those as they don't have taxes for foreign companies to begin with. Double tax treaties only exist with countries that have taxes plus to comply with the tax laws you would generally need to establish a major presense in that country to justify it being your headquarters, so after all that expense you might as well move to Panama.

I think your best bet is to try to make a special deal with the government and/or threaten to leave and take your business to another jurisdiction.