Norm for the Application of Article 87, Paragraph 3 of Law No. 822, Tax Coordination Law

Resolution No. CD-SIBOIF-884-1-ABR7-2015 Dated April 7, 2015

NORM FOR THE APPLICATION OF ARTICLE 87, PARAGRAPH 3) OF LAW NO. 822, TAX COORDINATION LAW

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That Article 87, paragraph 3 of Law No. 822, Tax Coordination Law, published in La Gaceta, Official Gazette No. 241, on December 17, 2012; amended and added to by Law No. 891, Law of Reforms and Additions to Law No. 822, Tax Coordination Law, published in La Gaceta, Official Gazette No. 240, on December 18, 2014; establishes that, "...the withholding tax rate on capital income and capital gains and losses is ten percent (10%), for non-residents on capital gains and for income generated by financing granted by international banks with investment grade, according to the regulation on the matter defined by SIBOIF."

II

That for the purposes of applying the aforementioned article, it is necessary for the Superintendence of Banks and Other Financial Institutions to determine which international banks hold an investment-grade rating.

In exercise of its powers;

HAS ISSUED

The following:

Resolution No. CD-SIBOIF-884-1-ABR7-2015

NORM FOR THE APPLICATION OF ARTICLE 87, PARAGRAPH 3) OF LAW NO. 822, TAX COORDINATION LAW

CHAPTER I CONCEPTS, OBJECT, AND SCOPE

Article 1. Concepts. - For the purposes of applying the provisions contained in this regulation, the terms indicated in this article, both in uppercase and lowercase, singular or plural, shall have the following meanings:

a) Investment-grade rating: First-class risk rating issued by a credit rating agency, according to the nomenclature used by the respective agency.

b) Tax Coordination Law: Law No. 822, Tax Coordination Law, published in La Gaceta, Official Gazette No. 241, on December 17, 2012, and its reforms and additions.

c) Superintendence: Superintendence of Banks and Other Financial Institutions.

d) Superintendent: Superintendent of Banks and Other Financial Institutions.

Article 2. Object and Scope. - This regulation aims to determine which international banks hold an investment-grade rating, for the purposes of applying what is established in Article 87, paragraph 3) of the Tax Coordination Law.

CHAPTER II INTERNATIONAL BANKS WITH INVESTMENT GRADE

Article 3. Publication of list. - For the purposes of applying what is established in Article 87, paragraph 3) of the Tax Coordination Law, the Superintendence will publish on its Internet page a list of international banks with investment-grade rating, which will be updated annually. Borrowers of loans whose banks are not included in the aforementioned list may request the Superintendent to incorporate them, having to present the information that accredits that the bank holds the required investment-grade rating and the rating agency that assigned it.

Article 4. Notification. - The Superintendent will notify the competent fiscal authorities of the list of banks referred to in the previous article, as well as any updates to it.

CHAPTER III FINAL PROVISION

Article 5. Validity. - This Regulation shall enter into force from its publication in La Gaceta, Official Gazette.

(f) Ovidio Reyes R. (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moisés Casco Marenco) (f) illegible (Freddy José Blandón Argeñal) (f) U. Cerna B. Secretary"

URIEL CERNA BARQUERO Secretary of the Board of Directors SIBOIF