Dear Clients and Friends:
Romero Pineda & Asociados, informs you that on November 12th, the Legislative Assembly at its plenary session approved Decree number 177, which temporary measures exempt from withholding and payment of income tax the year-end bonuses received by workers in accordance with the Labor Code and the Law on Additional Compensation in Cash, up to an amount not exceeding two monthly minimum wages in the trade and services sector (US$503.40).
The year-end bonuses exceeding the referred amount will be subject to withholding and payment of this tax by deducting the two aforementioned minimum wages.
For additional information and legal assistance on this or any other Corporate and/or Labor matters, please feel free to contact Jose Freddy Zometa (Partner of the Corporate Division) and/or Beatriz Merino (Coordinator of the Labor Unit), at (503) 2505-5555
We will be pleased to assist you.