Costa Rica: Corporation Tax No Longer in Effect

A ruling by the Constitutional Court has declared the tax on corporations illegal, starting from 2016, but companies must pay for the fiscal year 2015, which ends of on January 31.

Thursday, January 29, 2015

From a statement issued by the Constitutional Chamber of Costa Rica:

By Vote No. 2015-1241, the Constitutional Chamber, by a majority declared as unconstitutional fundamental articles of the Law on Taxes on Corporations No. 9024 of December 23, 2011. The unconstitutionality derives from violation of basic principle of constitutional rule of law committed by the Legislature during the processing of the bill, since a draft was published and then through a replacement which was never published, key tax issues were amended relating to taxable persons (obligated) and of the rate, also in the replacement text, which was never published, sanctions not mentioned in the original bill were introduced. The Constitutional Court has indicated that the principle of disclosure is in effect, with particular intensity in the case of the tax, through which obligations or economic burdens are imposed on citizens .

More on this topic

El Salvador Withdraws Municipal Tax

April 2016

Noting that the right to property was violated, the tax that the Mayoral Office of San Salvador charged private companies using a calculation based on their assets has been declared unconstitutional.

The ruling in question eliminates Article 1.021.1 from the rate of Excise Taxes set by the Municipality of San Salvador, San Salvador department, which stated that the municipal tax collection must be calculated based on the assets of companies.

Costa Rica: Return of Corporation Tax

April 2015

With the new bill the aim is to redeploy the payment of corporation tax, which was declared unconstitutional and suspended in January.

The new initiative seeks to resurrect the creation of the tax, fees and penalties, redefining the criteria for their application. However, there are Members who do not support this measure, who assert that is mostly affects small and medium enterprises.

Costa Rica: Corporate Tax Endorsed

September 2011

The Constitutional Court has endorsed a tax on corporations, which had been sent for review by opposition legislators.

Now the bill must go to a second debate, in order to be formally approved.

The annual tax of $300 applies to active corporations, inactive companies must pay half the amount. In turn, micro and small businesses are exempt from tax.

Costa Rica: New Tax Will Not Apply to MSEs

August 2011

The government has reiterated that the new tax on corporate bodies, approved in first debate in Congress, does not apply to Micro and Small Enterprises.

The new statements come in the face of recent criticism of the bill, by some opposition representatives.

The proposal, which intends to charge a tax of $300 for corporate bodies registered as active and a $150 for those who are non active, and was approved in first reading in the Legislative Assembly and is currently being debated in the Constitutional Court.

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