Update of Income, Salary, and Earnings Tax Brackets, and Tax Credits applicable as of January 1st, 2021

The Tax Authority in Costa Rica has enacted a modification to the Income, Salary, and Earnings Tax Brackets to be applied as of January 1^st, 2021. This change to the Law on Income Tax signifies an adjustment of 0.28% to the income tax brackets as shown below.

Income Tax Brackets

	Applicable Tax %
Up to CRC 842,000.00 per month.	Will not be subject to tax
On the excess of CRC 842,000.00 per month and up to CRC 1,236,000.00.	10%
On the excess of CRC 1,236,000.00 per month and up to CRC 2,169,000.00.	15%
On the excess of CRC 2,169,000.00 per month and up to CRC 4,337,000.00.	20%
On the excess of CRC 4,337,000.00 per month.	25%

Also, tax credits will be adjusted following the said modification. Employees can deduct CRC 1,570.00 for each child, and CRC 2,370.00 for the spouse.