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Income tax

Depreciation in Costa Rica: the accounting figure and the deductible one

They are two calculations on the same asset, each with its own purpose. And the deductible one is not yours to choose: it comes from a published table.

7 min readTicuenta
The two rules: for accounting, the useful life is estimated by the entity according to how it expects to consume the asset. For tax, the percentages in the annex to the income tax regulation govern, and only two methods are accepted: straight line and sum of the years' digits.

The tax rates that come up most

Asset% a year, straight lineTax useful life
Buildings of concrete, brick or metal2 %50 years
Computer equipment20 %5 years
Office furniture and equipment10 %10 years
Cars used in the business10 %10 years
Goods lorries20 %5 years
Construction machinery and equipment15 %7 years
Electrical installations7 %15 years
Hand tools10 %10 years

The complete table itemises hundreds of assets. The rule is simple: if the asset is itemised, its percentage is used; if not, the group's. And a different percentage can be requested from the tax authority, with justification.

The most frequent clash. A computer that in practice lasts three years is depreciated in the books over three years — which is correct under the accounting standard — but for tax it goes at 20 % a year, five years. In the first two years you deduct less than you recorded; in years four and five you deduct something that is no longer in the books.

The tax rules that get forgotten

  • The base is the original cost

    Purchase plus transport, installation and assembly. Exchange differences from the year of purchase are added to the cost; later ones go to expense or income.

  • The first year is pro rata by months

    An asset bought in September does not depreciate the whole year: it depreciates the months of use. The last year likewise.

  • No depreciation on revaluations

    Even where the accounting standard allows revaluation, that part generates no deductible expense. And when the asset is sold, the revaluation does not enter the book value for calculating the gain either.

  • Mixed use, pro rata

    Only the part used in the activity is depreciated. On indivisible assets — the classic case of a mixed-use vehicle — the argument with the tax authority is a common one and rarely goes your way.

  • Once a method is adopted, it is not changed

    Moving from straight line to sum of the digits requires authorisation.

The one that is lost for good. Depreciation not applied in one period cannot be deducted in a different one. If a year closed without an asset's depreciation being recorded, that expense is not recovered later.

What should not be capitalised

Assets with a unit cost equal to or below 25 % of a base salary go straight to the period's expense: they are neither capitalised nor depreciated.

With the base salary of ₡462,200 in force in 2026, the threshold is around ₡115,550. It is worth confirming the year's base salary before applying it, because it is updated by decree. And it is better to set the criterion once and apply it evenly: capitalising every chair and every keyboard adds no information and plenty of work.

And this is where deferred tax comes from

When the accounting and the tax depreciation differ, the difference is temporary: it does not disappear, it settles over the years. That is exactly what deferred tax recognises, and the tax authority itself notes that a taxpayer should apply whatever the accounting standard establishes, as long as it does not conflict with a tax rule.

AccountingEstimated lifeThe one you define
TaxRate from the annexThe one that governs the return
DifferenceTemporaryDeferred tax
Two calculations on the same asset, each with its own purpose.
From Ticuenta

Assets with their depreciation calculated

The first instalment is prorated over the months of use, as the tax rule requires, and the period's depreciation entry comes out with it.

See how it works

About this article. The methods, the base and the rates are in annexes 1 and 2 of the regulation to the Income Tax Act. The prohibition on deducting depreciation of revaluations, on carrying depreciation to another period, and the criterion on deferred tax, are in resolution DGT-R-029-2018. Confirm the year's base salary before applying the direct-expense threshold.

Verified as of 24 September 2026. Tax rules change. This is information, not tax advice.

Sources: Current legal texts (Sinalevi) Ministry of Finance

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