The Problems of Corporations Tax

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

Monday, May 7, 2012

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.

The agency says there are high costs associated with collecting the tax on legal persons, and therefore they are requesting that 5% of total revenue is paid by way of commission for their services to the Treasury, reported

"They had to make numerous decisions, always trying not to with the sense of not to impair as far as possible the administration, because the law is unclear on concepts such as what are active and what are inactive companies. This made the collection process complicated," said Dagoberto Sibaja, director of the National Registry.

Another aspect of concern to the director of the National Registry is the definition of tax administration as provided by law, and which he said could worsen collection in the future.

More on this topic

Dissolved Companies Can sell Their Goods

September 2017

Companies that have been dissolved by the National Registry of Costa Rica for being delinquent in the payment of the tax to legal entities can liquidate their assets, despite being inactive.

The National Registry clarified that the assets of the 265 thousand companies that were dissolved were not canceled, what remains in relation to them are collateral goods or mortgages, which means that the owners can dispose of them by means of a process of liquidation.

Corporations Tax

July 2012

The deadline for dissolution of corporations so as not to be taxed this year has passed; those who have not done so can start the process now in order to be exempt from future taxes.

Any legal entities that are dissolved from now on will have to pay the tax for the year when they begin the process of dissolution.

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.