Costa Rican businesses offer discounts at the end of the fiscal period, which runs from October 1 and ends September 30. Large retailers like Walmart have rock-bottom prices, with discounts of up to 70 percent on selected items in stock.
For many businesses the cost of sitting on inventory is very high, which is why huge discounts are offered to get rid of merchandise at the end of the tax year. This enables merchants to increase their capital for the next trimester. Disposing of inventory also create space for new products, especially for the highly-profitable Christmas season which is around the corner. Furthermore,, by reducing prices companies can pass the discounts off as expenses for tax deductions.
Sale prices also give shoppers a chance to purchase items that they normally could not afford.
Expat retirees who are on budgets can save money buy purchasing products at this time of year. However, they should be careful since it is easy to go overboard and spend more than originally intended. Before setting out to look for bargains they should establish a budget, decide what purchases are really necessary, compare prices, be careful of excess credit card spending and beware of impuse buying. Otherwise, they may end wasting money on items that are not really needed instead of taking advantage of the many money-saving offers.
Living in Costa Rica can be expensive but by taking advantage of the affordable items like fruits, vegetables, bus fares, health care, transportation, sales and clearances like the one mentioned above, living is inexpensive here.
Bear in mind that the country also offers one of the best year-round climates in the world, an unparalleled lifestyle and friendly people, all of which are priceless.
Mariela Pacecho, coordinator of Corporata Affaits at Walmart, told La Nacion, “these reductions correspond to a process of liquidation of merchandise that is part of the end of the fiscal period.”
While Walmart had its big blow this past week, Pacheco added that deals will continue, as well at their Masxmenos and Pali stores.
“Currently, EPA has more than 2,000 products with discounts ranging between 30% and 70%, which will reap great benefits people to invest in their home,” the company said in a statement.
EPA’s strategy is to offer customers to buy products affordably, to make room for new products.
For most companies, the fiscal period runs from October 1 to September 30, with income tax declaration be made not later than December 15.
German Morales, tax partner at Deloitte, explained that if the company sells the products at lower prices or at cost, then the profit is lower and tax to be paid is reduced.
The expert added that companies need to sell their existing stock to recover their liquidity to purchase merchandise for the new season