COSTA RICAN CORPORATE YEARLY TAX
On Dec 27, 2011 a new Costa Rican Law was enacted by which a new Corporate tax was created. (Law 9024).
This law will become in effect on April 1st 2012 and will affect the business entities, known as “S. A.”, “S. R. L.”, “E.I.R.L.”.
It also applies to any branch, subsidiary or entity representing any foreign corporation registered in Costa Rican National Registry. It does not apply to nonprofit organizations like “Asociaciones”, “Cooperativas”, foundations, etc.
The law exempts from this tax any corporation registered in the “MEIC” (“Ministerio de Economía, Industria y Comercio”) as a small business engaged in permanent and productive activities. It will also be exempted any entity that is dissolved within the next three months from the date the law will become in effect. (April 1, 2012), Therefore, if you have a corporation that you don’t need, you may dissolved before the end of those three months and you will not have to pay this tax at all.
To define the tax amount to pay, the law uses as a base the wages paid to an administrative assistant of the Court during January of the respective year, which was ¢316,200.00 (Colones) during 2011, ¢360,468.00 (Colones) during 2012 and will be ¢379,400,00 during 2013. (As of Dec 14, 2012, the Exchange rate is ¢492,88 per US Dollar)
The law states that Corporations that are registered as actives in Tax Administration will pay 50% of such base (Aprox. US$384.88 during 2013) and Corporations that are registered as inactive in Tax Administration will pay 25% of such base (Aprox. US$192.44 during 2013).
Existing Corporations must pay this tax during the first 30 natural days of every year (On or before Jan 30). Corporations that are in process of being registered will pay the tax during the registration process and as a condition to get such registration. However, when the corporation is created, the tax to pay will be adjusted to pay a proportion according to the days left in the year.).
The lack of payment of this tax for three years will mean that the Corporation will be dissolved and cancelled and an annotation will be put on all the properties of the corporation to make sure that the tax will be paid. The debt will be considered as a legal mortgage on the properties and the Legal representatives of the respective corporation will also be liable to pay for such tax if the Corporation does not pay it. Therefore, the law created a special mechanism allowing any legal representative to renounce, but it must be made before April 1st, 2014.
Ley 9024 – Impuesto a las Personas Jurìdicas – ALCA111-A_27_12_2011
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