Moratorium on Shareholder Registration

In Costa Rica, the Legislative Assembly approved in first debate a bill to avoid fines for errors in the declaration of the shareholders' registry for two months.

Tuesday, January 28, 2020

In its first debate, the file 21,758 Law of Moratorium for the Application of Sanctions corresponding to the ordinary declaration of the 2019 period, related to the transparency and final beneficiaries’ registry, provided for in the Law to Improve the Fight against Tax Fraud, was approved. The initiative gives an extension for shareholders of corporations to submit their lists, before applying sanctions, reported the Legislative Assembly.

See "Shareholders Registry: Projecting Backlogs in Costa Rica"

Pablo Heriberto Abarca, deputy of the Christian Social Unity Party (PUSC), explained to that "... the moratorium will only be applied to the sanctions and not to the procedure. Thus, the moratorium will be for 60 calendar days, 50% of the fine will be applied from 60 to 90 days and 100% of the penalty will be applied from 90 days on."

He added that "... The moratorium does not exempt the person obliged to make the ordinary declaration of the period 2019 from the registry of Transparency and Final Benefits."

The deadline for submitting the declaration, which is new for company owners, expires next Friday, January 31.

More on this topic

Costa Rica: Shareholder Registration Begins in September

August 2019

As of September 1, approximately 370,000 legal entities will be required to comply with the Registry of Transparency and Final Beneficiaries, with the legal documents ending in 0 and 1 being the ones that must do so first.

However, as of September 1, 2019, legal entities who prefer it, regardless of the last digit of their identity card, may make their declaration and send it in advance.

VAT in Costa Rica: No Fines or Sanctions until October

July 2019

The Legislative Assembly approved a moratorium of three non-extendable months, in sanctions, arrears, interests, fines or any other sanctioning disposition, related to the collection of the value added tax, which became effective last July 1.

Taxpayers qualified by the Tax Administration as large national taxpayers and large territorial companies are excluded from this moratorium, explains a statement from the Legislative Assembly.

Costa Rica: Shareholder Registry Approved

December 2016

With the legislative endorsement of the law against tax fraud the Ministry of Finance will be able to have access to the list of shareholders of corporations, and the people behind other legal entities.

The bill which was approved in second debate by the Legislature stipulates: an obligation to accept as a method of payment, in addition to cash, credit cards and debit cards; an obligation to be up to date with tax payments before making contracts or applying for permits, concessions or authorizations with any state institution; the introduction of penalties for tax advisers engaged in illegal maneuvers to evade or reduce the amount to be paid by taxpayers; and strengthening of the processes of judicial collection.

Shareholder Registry Revived in Costa Rica

June 2016

A bill approved in the Legislative Commission creates a register of shareholders to which the tax authority would have unrestricted access.

The main objective of the project against tax fraud is to enable the Directorate General of Taxation to seize the assets and bank accounts of taxpayers classified as delinquent, under the order of a judge. The embargoes could be extended for a period of up to two years.