Costa Rica: Approval of Business Tax Moves Forward

An annual tax of $312 will be created for companies, branches or representatives of foreign corporations, limited liability companies who are in active business.

Tuesday, August 9, 2011

The tax targets active corporations which undertake some type of commercial business. For inactive companies (not engaged in lucrative activities), the tax is $156.44.

"The bill exempts micro and small enterprises registered as such with the Registry of the Ministry of Economy, Trade and Industry, and who are registered as taxpayers with the Directorate General of Taxation.

Francisco Chacon, liberationist deputy, said last night that there may be active partnerships, doing business, who are not registered with the Ministry of Finance, because in order to qualify as a micro or small businesses they must meet several parameters.

The fiscal period for the tax will be between 1 January and 31 December and is to be paid in January. If a company registers in the course of this period it pays the tax proportionately.

The project also grants a period of three months from when the law comes into force for corporations to be dissolved without having to pay tax. "

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