Q COSTARICA
On March 21, Ley 9644, the income tax treaty with Mexico, which avoids the double taxation of income and wealth taxes, was published.
According to KPMG, the new treaty defines certain terms and conditions for the country where income is to be taxed. For Costa Rica, the treaty applies to income taxes. For Mexico, the treaty applies for federal income tax. The treaty also addresses the tax treatment of business benefits, dividends, interests, royalties, capital gains, and salaries.
The treaty would begin to apply from January 1, 2020 (in case the countries notify each other of the approval of the convention during this year).
This agreement turns out to be of importance for those taxpayers who have cross-border transactions between both countries, since the agreement defines differentiated tax
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