Costa Rica: Law for Corporate Income Tax Return

The Legislative Assembly is preparing to consider, in the first debate, a bill aimed at exempting inactive companies from the obligation to file an income tax return.

Friday, November 27, 2020

The file of this legislative proposal is number 22,307 and was presented by Deputy Pablo Heriberto Abarca. The initiative will be discussed in the Assembly, despite the opposition of the Ministry of Finance.

Carlos Vargas, general director of Taxation, told Elfinancierocr.com that "... traditionally in the country what has been stylized is that this type of entities is used as a means of holding goods, which does not denaturalize the figure, but does not mean that tax controls should not be carried out on them."

For Deputy Abarca, it is a matter of common sense, because if the company does not register activity, it will not generate profits, therefore, an income tax return should not be made.

There are deputies in the Assembly who, like the Ministry of Finance, are against it.

Catalina Montero, explained that "... it is known that for many years’ corporations were used as a mechanism to avoid the tax on the transfer of goods. It leaves open the possibility that some of these companies have used the figure to evade or cover up illegally acquired goods."

Check out the "System for monitoring markets and economic situation in Central American countries", developed by CentralAmericaData.



More on this topic

Taxes: Adjustments to the Global Income Bill

February 2021

By submitting to the Costa Rican Legislative Assembly a new text of the dual global income bill, the Alvarado administration intends to guarantee the tax exemptions that companies operating in the free trade zone regime already benefit from.

The dual global income bill that was sent last January 22 to the Assembly created confusion among the deputies.

From Territorial Income to Global Income

September 2020

In order to tax the total amount of profits of individuals or corporations based in Costa Rica, regardless of where their profits are generated, a bill was submitted to the Assembly that seeks to amend the Income Tax Law.

Currently in Costa Rica a territorial income system is applied, which consists of taxing profits produced exclusively at the local level. If the Income Tax Law is modified, the situation could change.

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: 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.

 close (x)

Receive more news about Local Law

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jul 29)
Brent Crude Oil
75.08
Coffee "C"
199.85
Gold
1,829
Silver
25.62