Posted on July 4, 2017
Costa Rica Corporation Tax is BACK!
Taxes just never go away! The corporation tax that was declared unconstitutional is back ! The courts ruled the old tax was unconstitutional so it was dropped for two years. Well the government figured out a way to make it legal. The new corporation tax will be effective September 1, 2017 and will cover through December 2017. So the tax will be pro rated. Starting January 1 2018 the annual fee will be the full amount. Inactive corporations meaning those who do not have income but just hold property such as homes, land, boats, cars, trucks will pay $113.15 per year which is 15% of the base salary in Costa Rica – 426,200 colones. Active corporations that have income such as rental income with income less than $91,675 per year will pay $188.58. This amount increases with income increase to a maximum of 50% of the base salary.
Inactive companies are required to file Form D-140 – Declaration of Modification of Data – indicating the tax address, email and other data on the form. Failure to submit this statement within the established period will result in a fine of half a basic salary (¢213,100) for each month the form is not on file, or a fraction thereof corresponding to any partial-month delay.
The money raised by the tax will for the most part be given to the Ministry of Public Security, with 90 percent of the collection being allocated for the construction of police stations, the purchase and maintenance of police equipment, and in police patrols. The remaining 5 percent of the tax revenue will go to the Ministry of Justice, and the other 5 percent to the Judicial Investigative Police Agency