🇨🇷 Costa Rica: Reimbursement Receipts Must Be Issued in the Company's Name

Summary: To comply with Costa Rican tax regulations, all expense reimbursement receipts must be issued in the company's name — not the employee's. Non-compliant receipts can be reclassified as taxable income.

Background

Costa Rican tax authorities require that documentation for reimbursable business expenses (travel, equipment, supplies, etc.) be issued to the legal entity — in this case, your local employer of record — rather than to the individual employee. This is a standard requirement for the expense to be treated as a legitimate business cost rather than personal income.

What This Means for You

If a reimbursement receipt is issued in an employee's name instead of the company's, local tax authorities may reclassify that expense as taxable personal income. This results in:

• A 30% additional tax cost on the reimbursed amount
• Potential delays in processing the reimbursement while the issue is resolved

What to Do

1. Use the correct billing information. Your company's local entity billing details were shared during onboarding. Make sure employees use these details — not their personal name — when requesting receipts or invoices for reimbursable expenses.
2. Check before submitting. Before filing a reimbursement request, confirm the receipt shows the company's legal name and tax ID, not the employee's.
3. Reach out if you're missing the entity information. If you or your employees don't have the correct billing details on hand, contact your CSM or Support and we'll resend them.

FAQ

Q: What if a receipt was already issued in the employee's name? A: Contact your CSM as soon as possible — in some cases the vendor can reissue the receipt. If not, be aware the reimbursement may be treated as taxable income.

Q: Does this apply to all expense types? A: Yes, this applies to any reimbursable expense requiring a receipt or invoice under Costa Rican tax rules.