Costa Rica: Return of Corporation Tax

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

Thursday, April 23, 2015

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.

Fernando Rodriguez, Deputy Minister of Revenue at the Ministry of Finance, told Nacion.com that "... We hope to have broad support from MPs to restore the tax. During the discussion itself we intend to improve aspects of the project such as a proper definition of what is a dormant company. There are companies that fall into this category, but are used to register goods. "

Alan Saborio, CEO of Deloitte firm specializing in tax advice, added "... The judges did not give a justification of the constitutionality of the tax fundemenatally, but through the legislative process. In the passage through Congress, topics can be discussed that were not analyzed by the judges. The amount of tax for companies, whether active or inactive, is the same. "



More on this topic

Costa Rica: Law for Corporate Income Tax Return

November 2020

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.

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.

The Problems of Corporations Tax

May 2012

Lack of clarity in the text of Costa Rica’s law imposing a tax on corporations, is creating ambiguities and difficulties in collection.

The National Registry is experiencing many difficulties in implementing the collection of tax on corporations, because it lacks allocated funds to proceed, and the registry of MSMEs at the Ministry of Economy, Industry and Commerce (MEIC) is not very helpful because of its own shortcomings.

Corporations Tax Collection Starts

March 2012

Starting on Monday all companies enrolled in the National Registry of Costa Rica, must pay an annual tribute established by Law 9024.

The basis for calculating the new tax is 50% of a basic monthly salary, which is 180,300 colones ($357) in 2012, and 90,150 colones ($178.5) or half, for inactive companies for each year from January to December.

Tax On Registered Companies in Costa Rica

January 2012

A new annual tax applied to existing and new legally registered companies will become effective on April 1st.

Law 9024, the Company Tax Law, imposes a tax on all corporations, as well as branches of foreign companies or their representatives and individual limited liability companies that are registered or hereafter entered in the National Registry.