5 THINGS YOU SHOULD - Port Manatee · Receivable, Invoicing,& Collections •Auditing •Cash...

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INVESTING IN COSTA RICA 5 THINGS YOU SHOULD KNOW May 2015. All Rights Reserved. The facts of this report are believed to be correct at the time of publication. Please note that the contents delivered are based on information gathered in good faith from both public and proprietary sources. As such, CINDE’s Department of Research can accept no liability whatsoever for loss or damage arising as a result of the use of this report, either in its published or online format.

Transcript of 5 THINGS YOU SHOULD - Port Manatee · Receivable, Invoicing,& Collections •Auditing •Cash...

Page 1: 5 THINGS YOU SHOULD - Port Manatee · Receivable, Invoicing,& Collections •Auditing •Cash Application •Cost Accounting •Financial Reports •Fixed Assets •General Ledger

INVESTING IN COSTA RICA5 THINGS YOU SHOULD KNOW

May 2015. All Rights Reserved. The facts of this report are believed to be correct at the time of publication. Please note that the contents delivered are based on

information gathered in good faith from both public and proprietary sources. As such, CINDE’s Department of Research can accept no liability whatsoever for loss or

damage arising as a result of the use of this report, either in its published or online format.

Page 2: 5 THINGS YOU SHOULD - Port Manatee · Receivable, Invoicing,& Collections •Auditing •Cash Application •Cost Accounting •Financial Reports •Fixed Assets •General Ledger

250 high-tech companies, 21% of Fortune 100 companies have established SUCCESSFUL operations… and are STILL GROWING

1.

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World-renowned companies EXPANDING in Costa Rica

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MNCs are carrying out, more than 75 processes in over 10 DIFFERENT LANGUAGES… worldwide

2.

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Finance & Accounting

• Accounts Payable/Billing & Billing Adjustments

• Accounts Receivable, Invoicing,& Collections

• Auditing

• Cash Application

• Cost Accounting

• Financial Reports

• Fixed Assets

• General Ledger

• Order-to-Cash

• Purchase-to-Pay

• Record-to-Report

• Revenue Cycle

• Tax Filing and Analysis

• Treasury

Back Office

• Business Presentation Design

• Data Mining

• Forecasting

• Portfolio Analysis, Investment Research

• Training

Engineering & Design

• Application Engineering

• Design of Gas Propelled Engines

• Orthopedic Reconstruction & Design

• Process Management

• R&D+i

Human Resources

• Ex-pat Relocation & Training

• Payroll

• Regional Recruitment

• Talent Management

• Travel & Entertainment

Contact Centers

• Collections

• Consecutive Interpretation

• Customer Service/Care

• IT Support (Tier 1-4)

• Telemarketing/ Sales

Costa Rica offers a wide arrayof complex services

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Digital Technology & Animation

•3D Animation

•Creative Conceptualization

•Interactive Advertisement & Web Development

•Marketing Strategy

•Motion Design

Supply ChainManagement

•Global Procurement

•Procurement-to-Pay

•Bidding

•Purchasing

•Transportation planning and execution

•Suppliers

•Inventory allocation and management

•Planning

•Forecasting/Seasonality

•Materials management and planning

•Customer order tracking (credit hold, order processing, claims)

Regional Centers

•Distribution of raw material

•Inventory Management

•Logistics Services

•Sales and Marketing Strategies

Software Development

•Back-End Programming

•Business Intelligence

•Embedded Software

•ERP Programming

•Front-End web development

•Legacy System Support

•Online advertising

•Quality Assurance & Testing

•Software Design & Engineering

Reengineering of processes

•Business Analysis

•Compliance & Fraud Control

•Legal Process Outsourcing

•Research and Data Analysis

•Business Presentation Design

•Data Mining

•Forecasting

•Portfolio Analysis, Investment Research

•Training

Costa Rica offers a wide arrayof complex services

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Costa RicaEnd-to-end centers offering

services 24x7x365 in

English, Spanish,

Portuguese, French,

German, Italian, Malay,

Japanese, Dutch, Polish,

Czech, Finnish, Mandarin

North

America

South

America

Africa

AsiaEurope

Global centers of excellence serving the world in more than 10 different languages

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The right scalability, that allows companies to grow with the right talent3.

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Source: Data for companies attracted by CINDE, 2014

A g

row

th o

f 40%

sin

ce 2

005

2005

$35K

2013

$50K

Average output per employee

Shared Services unwanted turnover rate: 9.6%

Notes: a/: Includes technical high school and university graduates in Business,

Economics, F&A, Engineering, IT, and Logistics majors per yearb/: Represents the net hiring by companies attracted by CINDE.

Source: CINDE, DELOITTE, CONARE, University Registry Department, INA, 2014

18,867

21,07022,792

5,302 5,0994,317

2011 2012 2013

Services Sector: Supply a/ and demand b/

of talented people

Supply Demand

Increased productivity with low attrition rates:Services Sector

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Supply (average 2011 -2013)

Source: CINDE, CONARE, University Registry Department, INA, 2014

UNIVERSITIES17,700 diplomas granted in Business, Economics,

F&A, Engineering, IT, logistics majors per year

NATIONAL

TRAINING

INSTITUTE

19,600 trained people by INA in trade and service

programs per year (Business, Languages, IT)

Technical

3,200 graduates in

Accounting, Business, IT

programs per year

HIGH

SCHOOL

Academic

19,000 graduates

per year

Knowledge, expertise and productivity paving the way for excellence and innovation

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MNCs leveraging the best educational system in Latin America, reinforced by a strong pipeline of expertise

4.

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Best educational system in Latin America

(WEF, 2014-15)

The Right ConditionsQualified Human Resources

Second in Latin America and 16th worldwide

in talent retention

(WEF, 2014-15)

Highest English Proficiency in Latin America

First in both TOIEC and TOEFL tests

(ETS, 2013)

Best MBA in the region - INCAE: #2 Business

School in Latin America

(America Economia, 2014)

Impressive 466% increase in university

graduates between 1993 and 2013

(CONARE, 2014)

In Costa Rica the accounting processes follow the IFRS -

The Public Accountants College and the Costa Rican

Chamber of Industries offers IFRS actualization programs

Tertiary enrollment has undergone a twofold increase in 7

year - Between 2005-2012 the enrollment rate increased

21.1 percentage points

(WEF, 2014-2015)

Government investment of US$450 million in human

capital initiatives

(IADB, WB)

High number of people certified in SAP, PMI, Six-Sigma,

Oracle, Cisco Certifications

26 new majors and technical programs in Service-

related fields since 2005

(CINDE, 2014)

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Open, receptive and collaborative academia

Some of the programs currently in place: Services Sector

Local Technical

Telecomm Technical Program -INA

Technical English Program for Service Centers - INA

Bilingual Service Center Executive - MEP

Digital Design and Development -MEP

Train the trainers program imparted by companies

Training Local University

PhD programs: Engineering, TEC+UCR / Computer Science UCR

Mechatronics Engineering - TEC

Computer Engineering - TEC

Master’s program in Electronics -TEC

Initiatives

Master’s program in Database Specialization - U. Cenfotec

Web Interaction and Design - U. Cenfotec - Veritas

Cloud Computing and Virtualization - U. Cenfotec

Infosys: Training in Cloud Computing and Networking

Bilingual Corporate Accounting - MEP

Bilingual Software Development - MEP

Bilingual IT Support - MEP

Logistics and Supply Chain - MEP

Articulation Project in IT: MEP-TEC

Bilingual Networking -MEP

Portuguese (Pilot project) - INA

Mandarin (Pilot project) - INA

Master´s program in Logisticsand Supply Chain - TEC

Information Technology Administration - TEC

SS & BO Chapter University: Copal Amba - Procter and Gamble

Project Management -TEC

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Open, receptive and collaborative academia

• Main areas covered by academic programs: Services Sector

Joint collaboration with multinational companies, the government and academia to improve the

business climate and competitiveness of the country.

• Accounting

• Finance

• Marketing

• Human Resources

• Specialized English for Service Centers

• Business Administration

• IT (Networking, Soft. Develop., Tech. Support)

Technical and University levels

• Computer and Informatics

• Bioinformatics

• Industrial Engineering

• Electric

• Electronics

Post Graduate - Specialization programs

• Web Interaction and Design

• Digital Design, Development, Animation

• Quality

• Logistics

• Telecomm

• Mechatronics

• Project Management

• EHS

• Logistics and Supply Chain

• Database Technologies

• Business Administration

• Electronics

• Graphic Design

• Analytical Thinking

• Telematics

• Statistics

• Human Resources

• Marketing

• Economics

• Telematics and Networks

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Stability, innovation and a proven international competitiveness provide the right climate for success5.

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The right conditions: Tax Incentives

First 8 year period, up to

100%INCOME

TAX EXEMPTION

Following 4 year period

50%INCOME

TAX EXEMPTION

Service Projects & Manufacturing Projects*

*NOTE: Manufacturing companies with an investment that exceeds US$10 million and 100 employees, established under the Free Trade Zone Regime. For smaller manufacturing

operations, companies will pay a preferential 6% income tax rate for 8 years and 15% for another 4-year period (statutory income tax 30%).

In all cases, multiple additional 8-year renewals periods may be granted if

significant reinvestment is made.

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The right conditions: Tax Incentives

Investment in depreciable fixed assets (land is not included). Company must comply with an investment plan to be accomplished between 1 and 8 years; which could be

reached at any time during the 8 year period. Upon completion, PROCOMER will verify the $10MM investment in fixed assets according to its value in books for the current

fiscal year. Additionally, once the company has complied with the investment plan, the company must maintain the fixed assets which were part of the plan. Substitution of

the fixed assets is permitted only if the new depreciable assets have the same value in books as the fixed asset to be replaced when the investment plan was completed.

100% Tax Exemption

No Expiration Period 10 Year Period*

• Custom duties on imports/exports

• Withholding tax on royalties, fees,

dividends

• Interest income

• Sales tax on local purchases of

goods/service

• Stamp duty

• Property Taxes

• Property Transfer Taxes

• Municipal patent license

(Operating License)

All Investment Sectors*

Page 18: 5 THINGS YOU SHOULD - Port Manatee · Receivable, Invoicing,& Collections •Auditing •Cash Application •Cost Accounting •Financial Reports •Fixed Assets •General Ledger

Costa Rica is first in

Innovation and

Business

Sophistication in Latin

America (GCR 2014-2015, WEF)

Government

cooperation:

Schemes with Infosys,

Amba Research

(Achieve More), IBM

Tax incentives offered by

the Free Trade Zone

Regime translate in an

average cost-savings of

US$2,000 per employee

per year

(CINDE, 2014)

Immigration Procedures

Streamlined immigration

applications and visa

granting, and no limitation

on number of foreigners

working in companies

Safest country in Latin

America (LATAM

Chronicle, 2014).

Second most politically stable

country in Latin America (World

Bank, 2013)

Solid Utilities

Infrastructure:

100% redundancy

through three fiber optic

submarine cables

Strategic location: close

proximity to the USA, with

720 weekly flights

worldwide

Employer – Employee

environment

1st in Latin America in

Cooperation in labor-

employer relations

(GCR 2014-2015, WEF)

THE RIGHT CONDITIONSExcellent Business climate

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Great Potential

1st High-Tech exporter of industrial products in Latin

America, 4th worldwide

CINDE based on data from the World Development

Indicators 2014, World Bank

1st Country for future FDI in Central America and the

Caribbean

Financial Times: FDI Intelligence, 2013

1st Outsourcing City of Latin America (San Jose)

Top 100 Outsourcing Destinations 2015, Tholons

The top choice among Latin America countries for

establishing a Global Business Services Center

The Hackett Group, 2013

San Jose is among the top 2 Metropolitan areas to

invest in Latin America

Global Best to Invest Report, Site Selection Magazine 2013.

Top seven City for future FDI in Latin America (San

Jose)

Financial Times: FDI Intelligence, 2013

Costa Rica is among the top 10 Global Best to Invest

countries

Site Selection Magazine 2013.

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Thank you!

FUENTE: CINDE & PROMER