Knock knock! Corporate taxes are due!
The payment of Corporate taxes is in force since 2017 according to the law N° 9428 and all companies registered in Costa Rica are obliged to do so by January 31st, 2023. Who should pay this
The payment of Corporate taxes is in force since 2017 according to the law N° 9428 and all companies registered in Costa Rica are obliged to do so by January 31st, 2023.
Who should pay this tax?
The tax will be applicable to the following business: Sociedades Anónimas (corporations), Sociedades de Responsabilidad Limitada (Limited Liability Companies), Sociedades en Comantida (Limited Liability Partnerships), Sociedades Colectivas (Parnerships), and Empresas Individuales de Responsabilidad Limitada (Individual Limited Liability companies).
Who does not have to pay this tax?
Taxpayers who are carrying out productive activities of a permanent nature, classified as micro and small companies (such as small scale farmers) and registered as such in the registry kept for this purpose by the Ministry of Economy, Industry and Commerce (MEIC) will be exempt; likewise, small and medium agricultural producers registered as such in the registry of the Ministry of Agriculture and Livestock (MAG) and also, those who are duly registered as taxpayers before the General Directorate of Taxation of the Ministry of Finance, at the time the tax generating event occurs, will be exempted too.
What happens if I do not pay?
The payment of this tax is annual and, failure to pay it entails fines that may affect the equity of the companies you own.
Taxpayers who pay taxes after the legally established term shall pay a fine equivalent to one percent (1%) for each month elapsed from the time the obligation should have been paid until the date of effective payment of the corporate tax. This penalty shall be calculated on the amount not paid on time and in no case shall it exceed twenty percent (20%) of the tax entire amount.
Additionally to the fine mentioned above, the outstanding amounts can be placed as a lien on the company’s assets.
Upon accumulating three consecutive annual periods without complying with the payment of the corporate taxes, the dissolution and cancellation of the company in the National Registry will be ordered.
How much and when do I have to pay?
The yearly fee for the coming year will be as follows:
₡63,930 colones for inactive corporations
₡106,550 colones for active corporations
₡213,100 colones for active corporations with revenues over ₡119,000,000 colones
The payment of corporate taxes must be paid within the first 30 calendar days of each year, that is, during the month of January and this tax must be paid at the Banco de Costa Rica (BCR) either online or any of its branches.
In summary, please pay your corporate taxes. Outlier Legal Services can handle your corporate tax payments and has monthly business plans available that will take the guesswork and worry out of compliance for your company. We are here to help – contact us today.