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What is the Marchamo or Circulation tax

WAYRA Instituto de Español

The legal existence and enforcement of the marchamo payment can be found in the tax laws as it is considered a tax, however, the nonpayment of the tax entails administrative penalties linked to the Traffic Law and even Insurance Law.
The marchamo is formed by a “property tax” of movables. This tax is regulated in the article 9 of the Law 7800 of Tax Readjustment, it is an annual tax, non-deductible of the income (rent) tax, applied on the vehicles registered in the Public Registry, aircrafts registered in the Register of Civil Aviation, and recreational or fishing boats registered in Maritime Transport Public Registry. The boats for transportation of passengers are excluded.

It is important to take into account that from Monday, December first, the Public Registry will not register the transfer of vehicles which have not canceled the 2015 marchamo. Same situation will occur with the delivery and exchange of plates.
This tax is calculated on the value of the vehicle, boat or aircraft according to a list issued by the Executive power by decree for each type of brand, year, body style; and these are the institutions that get benefit from the payment of this tax:

  • Mandatory insurance for vehicles 65%
  • Cosevi                                 59%
  • Property of vehicles tax                                 39%
  • Traffic violations Cosevi                 31%
  • Parking meters                                                 94%
  • Impuesto a favor de las Municipalidades 0,15%
  • Wildlife stamp                                                 08%
  • Law 7088                                                 75%
  • Canon Aresep 60%
  • Public transport Canon                                                 86%
  • Sales tax                                                                68

The Non-payment of the marchamo (December 31, 2014 deadline) entails the removal of the plates of the vehicle and also a fine equivalent to 10% per month of the amount that should have been canceled by the tax, without the total exceeding the initial tax.
The  vehicle mandatory insurance is another item that makes up the marchamo, this is a is a united, universal and mandatory social insurance for all vehicles in the country, covering the injury and death of people (pedestrians and vehicle occupants), victims of a traffic accident, whether or not exist the driver’s responsibility.

When an accident occurs people can use the mandatory insurance for medical care, medicine, rehabilitation and to cover permanent, partial disability, death, funeral expenses of people involved in the accident.

For 2015, the Mandatory Automobile Insurance coverage is ¢ 6,000,000.00 (six million colones) for deceased or injured person.
To pay the marchamo is only necessary that the vehicle has the Riteve up to date, and for the person to present her or his ID and a register study of vehicle. This can be paid online or at any office of the INS, collection agencies and some banks and supermarkets.

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