New tax compliance procedures improve Costa Rica's ranking in Doing Business index

Fernando Sanchez, managing partner of Russell Bedford Costa Rica, comments on World Bank Paying Taxes survey. End Quote

(1888PressRelease) March 24, 2012 - Recent reforms to its tax administration have seen Costa Rica leap 18 places in World Bank rankings of the world's easiest tax compliance regimes, moving from 156th place to 138th.

The annual World Bank Doing Business report assesses regulations affecting domestic firms in 183 economies, ranking each on the basis of various criteria including ease of starting a business, insolvency resolution, cross-border trade and the ease (or otherwise) of paying taxes. Russell Bedford member firms have contributed to the report's Paying Taxes survey since 2009, with 51 member and correspondent firms this year contributing data on tax regulation, compliance and the real tax burden on businesses and entrepreneurs.

The widespread use of online payment systems for social security contributions, in particular, is delivering real benefits for businesses in Costa Rica.

Fernando Sánchez, managing partner of Russell Bedford Costa Rica (ABBQ Consultores, S.A.) commented: "It is always encouraging to see new compliance procedures making life easier for business. But the picture isn't entirely positive. Costa Rican companies are still spending an average of 246 hours per year on their tax compliance - significantly more than the 186 hours required of businesses in high-income OECD companies.

"Hopefully Costa Rica's position will have improved by the time the next World Bank report is published. This year, the Tax Administration implemented significant improvements to facilitate online tax compliance. In addition, Costa Rica is currently negotiating further tax reforms that could introduce important changes to the VAT and income tax regulations."

For further information, contact Fernando Sánchez on +506 252 00201 / 252 00212 or Kempton Bedell-Harper on +44 20 7410 0339. Alternatively, visit the websites at www.abbq.com and www.russellbedford.com .

Note to Editors

About Russell Bedford International

Established in 1983, Russell Bedford International is a global network of independent firms of accountants, auditors, tax advisers and business consultants.

Ranked amongst the world's leading accounting and audit networks, Russell Bedford is represented by some 460 partners, 5000 staff and 200 offices in more than 80 countries in Europe, the Americas, the Middle East, Africa and Asia-Pacific.

All Russell Bedford affiliates are well-established firms offering international business advice and services to local and multinational clients. Most provide a full range of services comprising accounting, auditing, tax advice, general business guidance and financial consulting. In addition, many have special expertise in particular fields, such as international taxation or information technology.

In January 2008 Russell Bedford International was named one of the first 17 full members of the IFAC Forum of Firms after reporting it had implemented a globally coordinated quality assurance programme, committed to the use of International Standards on Auditing (ISAs), and met other specific ethics requirements.

Issued by:

Kempton Bedell-Harper
Marketing Director
Russell Bedford International
Russell Bedford House
250 City Road, London EC1V 2QQ
United Kingdom
T: +44 20 7410 0339
F: +44 20 7459 2337
E: info ( @ ) russellbedford dot com
W: www.russellbedford.com

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