Luxury Home Tax Deadline Extended
The Ministerio de Hacienda said on Thursday
it is extending the deadline for the payment
of the luxury home tax. Owners of luxury
homes will have until January 15, 2010 to
pay the tax and not December 31, 2009.
The
announcement was made by Jenny Phillips, the ministra de Hacienda.
Phillips said that only 600 of the estimated
10.000 owners of luxury homes have already paid.
The
minister added that the fact that many
offices are closed for the year end holidays
and the complexities experienced by the tax
department has
complicated matters for many, both the taxpayers
and the tax collector, the other reason for the extension.
On October 1, lawmakers passed a law that
imposes a special tax homes valued
at more than ¢100 million colones.
The tax is expected to raise some ¢10 billion colones for
government coffers, money that would be used
to eradicate slums.
The law requires that every owner of a
luxury home ( any home valued at ¢100
million colones or more, be it free standing
or part of a condominium) must pay the tax or face
sanctions that include fines and possible
confiscation of the home.
Minister Phillips said that home owners who
don't pay up by the deadline face a fine of
up to 10 times the original tax, plus
interest.
The tax is for a 10 year period, begging
this year.
One of the main problems is that the tax law
was passed in haste, leaving the tax
department to sort out the details and start
charging the tax immediately.
In addition, this is the first time that the
tax department has attempted to collect a
property tax in one lump sum.
Francisco Gamboa, director general de
Tributación, said that this has been a
learning experience both for the taxpayer as
the tax collector.
Some of the complaints filed with the tax
department so far is the complications of
the form and the manner of payment. In some
cases taxpayers have reported difficulties
in paying the tax, no matter how hard they
tried.
Tax experts recommend the hiring of
professionals to complete the forms and
service of calculation and payment of tax.
The price for the professional services
vary. The service can cost between us$200
and us$2.000 or more. Some firms offer
certificates of evaluation to assure the
taxpayer that the evaluation and
contribution is not unfounded.
Some owners of the luxury home tax are
totally confused as if they should pay or
not. Adding to the confusion it the
possibility of a Constitutional Court
challenge to the tax law, which could stall
the payment or collection of the tax until
the courts resolve the issue. However, no
such appeal has been filed as yet.
To see if you should pay, we offer the
following advice:
1. Determine the type of housing based on
Manual de Valores Base Unitarios por
Tipología Constructiva, which is available
on the Ministerio de Hacienda website
(https://www.hacienda.go.cr).
2. Obtain the m2 (per square metre) value of
the home.
3. Calculate the depreciation that
corresponds to your home depending on the
type of housing that it corresponds.
4. If the value of the home is more than
¢100 million colones, the property is
subject to the tax.
Editor's Note: The information contained in
this report is not to be taken as legal or
tax advice. We recommend the hiring of an
expert in property tax law and evaluations. |
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