Emerging Markets Rates and Currencies Handbook

central bank by the banks at the end of the day. Clients are not required to report anything. Banks are also required to have a specific license to be able to trade derivatives onshore. Requirements to open a foreign currency account It is permissible to open a USD account in Costa Rica and credit it with local currency (with an implied FX transaction to convert the funds). It is permissible to open a USD account in Costa Rica and credit it with local currency (with an implied FX transaction to convert the funds). Deal Management Rollover: Rollovers are possible for NDFs and are net settled. **This refers to offshore derivatives closed on a case-by case-basis under a referral model to close with counterparty Citibank N.A., Citibank London or Citibank Europe PLC. Unwinding: Unwinding: Possible to unwind NDFs, They are net settled. **This refers to offshore derivatives closed on a case-by case-basis under a referral model to close with counterparty Citibank N.A., Citibank London or Citibank Europe PLC. Early Maturity: Possible, net settled. **This refers to offshore derivatives closed on a case-by case-basis under a referral model to close with counterparty Citibank N.A., Citibank London or Citibank Europe PLC. Documentation Requirements Product specific: For spot transactions no local law documentation is required. Offshore derivatives closed on a case-by case-basis under a referral model to close with counterparty Citibank N.A., Citibank London or Citibank Europe PLC require an ISDA agreement. NDFs are usually traded with these counterparties up to one year based on the limited market capacity. Trade Flows No local law documentation requirements. Capital Flow and FDI No local law documentation requirements. Banco CMB (Costa Rica) S.A. Edificio B 5to piso Escazu, San Jose FX Sales Contact: +506 2201 0956 Tax Summary – Costa Rica Costa Rica W/H Tax • 15% WHT • No WHT • 15% WHT • 15% WHT on dividends for countries without tax treaty Deductibility of interests • Thin-Cap: net interest deduction limited to 30% of company’s EBITDA in 2021/2022; 28% in 2023; 26% in 2024; 24% in 2025; 22% in 2026; 20% in 2027 • Non-deductible interest • No restriction unless loan is guaranteed by a bank deposit of the same debtor • Generally deductible assuming general deductibility rules are met. • N/A Country Tax Deductibility and Considerations Inter-Co Debt Offshore Derivatives Equities Bank Loans Offshore Local Borrowing