Capital Gain And Loss Tax: D-162
Capital Gain is a benefit that results from a disposal of a capital asset—such as stocks, bonds or real estate—when the amount obtained in the sale exceeds the previous purchase price of the real estate,
Capital Gain is a benefit that results from a disposal of a capital asset—such as stocks, bonds or real estate—when the amount obtained in the sale exceeds the previous purchase price of the real estate, share or bond. Example: on December 1, shares are acquired for 50,000 colones. As of December 31, the shares have been revalued and their value is 55,000 colones, so there is a Capital Gain.
Loss of Capital is the difference between the price that was paid for the initial investment and the price when it is sold if the value of the sale is less, thus amounting to a loss of the initial value of the thing. For example, an investor that sells an asset at a lower price than what was paid when acquiring it will be incurring capital losses.
According to the Income Tax Law:
Article 7 of Capital Gain and Loss:
“B) In the case of personal property, it is the difference between the sale price and the cost of the property on the date the transfer is made; when applicable, the latter will be shown as depreciated, and the updated value expressed in colones in accordance with the rules established in subsection a) above. To the aforementioned cost, which should be backed by reliable receipts, the expenses or taxes incurred by the transferor to carry out the operation will be added.
c) In the case of transfers of shares of companies domiciled in Costa Rica, the capital gain is the difference resulting from the sale price and the cost of the share, expressed in current colones in accordance with the rules established in subsection a) above. For these purposes, it is presumed, unless proven otherwise, that the sale price may in no case be less than the book value, meaning the relationship between the total equity of the company and the number of subscribed and paid shares on the date of the transfer; while the cost value will be the one that the shareholder actually paid at the time of acquiring the share. “
Capital Gains and Losses are subject to the payment of a single and definitive tax of fifteen percent (15%). For these purposes, it is understood that there is a capital gain when a natural or legal person, domiciled in Costa Rica, has acquired the indicated assets, and these are unrelated to their usual profession.
In a different case, if the sale is of an asset acquired prior to the entry into force of the law, i.e. on a date before July 1, 2019, the transferor may choose to apply the 15% in the manner indicated above, or a fee of 2.25% on the total transmission value.
For the presentation of this tax before the Ministry of Finance, form D-162 was created for people domiciled in Costa Rica. This form can be found at the following link: https://www.hacienda.go.cr/ATV/Login.aspx which leads to the ATV of the Ministry of Finance. By entering the username and password, you will find in the forms section declaration D-162, named Capital Gain or Loss.
To calculate the amount of the tax to be paid, both the value for which the asset was acquired and the value for which it is being transmitted must be considered. The tax due will be what results from applying the 15% rate to the amount obtained when the initial acquisition value is subtracted from the transmission or sale value. It is important to emphasize that the acquisition value must be the real amount for which the asset was obtained and NOT the tax value of the property, these being the most important steps in form D-162: Capital Gain and Loss.