How are different expense categories treated in Costa Rica for reimbursement?

Expenses Invoicing Requirements

In Costa Rica, all transactions that generate a fiscal debit or credit are to be supported by invoices. All of the merchants in Costa Rica are obliged to issue an Invoice no matter the amount and / or type of products.

Passports/Work Permits/Visa

No issues, can be claimed as non-taxable as long as receipt is supplied

Transportation Expenses

No issues, can be claimed as non-taxable as long as receipt is supplied

Per diems

Travel expenses on account of domestic travel per diem shall be

supported only with invoices or other original documents and copy of

the voucher when the expense was made with the corporate credit

card (if applicable).

Travel expenses on account of foreign travel per diem shall be

supported as follows:

For accommodation expenses, they shall be supported with the proof

of payment issued according to the legislation of the issuing country.

For meal and transportation expenses with proof of payment issued

according to the legislation of the issuing country,

Air Travel/Bus and Train

No issues, can be claimed as non-taxable as long as receipt is supplied

Taxi, Cabify, Uber, and related apps

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Rental

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Parking Fees

No issues, can be claimed as non-taxable as long as receipt is supplied

Tolls

No issues, can be claimed as non-taxable as long as receipt is supplied

Other Business Travel-Related Expenditure

Event expenses (trade shows/conferences) - No issues, can be claimed as non-taxable as long as receipt is supplied

Travel Insurance

No issues, can be claimed as non-taxable as long as receipt is supplied

Mileage and Fuel

For employees who have a vehicle, Velocity recognizes mileage based on the current table of the Comptroller General of the Republic of Costa Rica. (Contraloría General de la República de Costa Rica) for the Type 2 Light Vehicles – B4.

Accommodation

No issues, can be claimed as non-taxable as long as receipt is supplied

Meals (travel/events/during work)

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Client Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Staff Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Mobile Phone bills

Employees may include as support the full invoice of their personal phone. However, the amount claimed needs to match the amount of calls done for business purposes. This will support client approval.

Broadband (Internet)

Upon supervisory approval, Velocity Global can reimburse these expenses where Broadband internet is utilized for Business Purposes.

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

Internal fixed assets policy.

Furniture

Internal fixed assets policy.

Stationery

No issues, can be claimed as non-taxable as long as receipt is supplied

Gifts

No issues, can be claimed as non-taxable as long as receipt is supplied

Coworking and Office Rentals

No issues, can be claimed as non-taxable as long as receipt is supplied

Bank Charges

Bank or credit card charges incurred because of the

employee's delays claiming expenses will not be reimbursed.

Foreign Currencies

Each employee is responsible for obtaining the necessary foreign currency on international travel; commission expenses for currencies purchased on foreign travel will be reimbursed with the respective supporting documentation.

Annual subscriptions

No issues, can be claimed as non-taxable as long as receipt is supplied

Training Expenses

Upon approval of the supervisor, a membership will be reimbursed per employee, per association, when it is specifically related to the functions of their job, with respective supporting documentation.

Medical Claims/Health Check Up and related items/Medical Insurance

N/A

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

No issues as long as event directly related to business. Please provide relevant receipts

Meals (travel/events/during work)

Meals on business trips are not taxable.

Di minimus expenses (Tips, no receipt)

N/A

Payroll Reporting

N/A

Additional Reporting

N/A

Review process

N/A