Deductible Expenses Costa Rica
Overview of Article 8 - Law 7092

Deductible Costs and Expenses

Businesses and individuals engaged in profit-generating activities, as referenced in Article 2 of the Law, are entitled to deduct from their gross income the necessary costs and expenses outlined in Article 8 of the Law, provided they are essential for generating current or potential income subject to income tax. 

In accordance with the statement above, the following are deductible from gross income:

As general rule:

All necessary expenditures to determine the cost of goods and services sold;

The Tax Administration is granted broad authority to qualify such costs, expenses, and outlays, to accept their total or partial deduction, and to reject unjustified items.




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