2017 income tax exemption for Christmas bonuses

Dear Customers and Friends:

ROMERO PINEDA & ASOCIADOS, informs you that the Legislative Assembly during the plenary session approved Decree number 831, published in the Official Gazette No. 215, Volume 417 dated November 17, 2017, whose transitory measures exempt from the retention and payment of the Income Tax income that as a bonus, workers receive referred to in the Labor Code and the Law on Additional Compensation in Cash, up to an amount not greater than two minimum monthly wages in the Trade and Service sector (US $ 600.00 ).

Those bonuses that exceed the aforementioned amount will constitute Taxable Income and as a consequence will be subject to the withholding and payment of said tax, deducting the two minimum wages.

In addition, we remind you that pursuant to Article 200 of the Labor Code, the bonus must be paid between December 12 and 20 of each year.

For more information and legal assistance on the requirements and payment method, causes of loss of the right to pay bonuses and other corporate and / or labor issues, please do not hesitate to contact Beatriz Merino (Coordinator of the Unit Labor) at (503) 2505-5555 or email bmerino@romeropineda.com.

For us it will be a pleasure to serve you.

Leave a Reply

Your email address will not be published.

three × five =