2018 bonus income tax exemption

ROMERO PINEDA & ASOCIADOS, informs you that on October 24, 2018, the Legislative Assembly during a plenary session approved Decree number 160, whose transitional provisions exempt from the withholding and payment of Income Tax the income that as a bonus, receive the workers referred to in the Labor Code and the Law on Additional Cash Compensation, up to an amount no greater than two minimum monthly salaries in the Commerce and Service sector (US$ 608.34).

Those bonuses that exceed the aforementioned amount will constitute Taxed Income and consequently will be subject to withholding and payment of said tax, deducting the two minimum salaries referred to.

In addition, we remind you that in accordance with 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 method of payment, causes of loss of the right to pay bonuses and other Corporate and/or Labor matters, please do not hesitate to contact Ms. Beatriz Merino (Coordinator of the Unit Labor) at (503) 2505-5555 or by email bmerino@romeropineda.com.

It will be a pleasure for us to serve you.