WHAT YOU NEED TO KNOW ABOUT THE NEW CORPORATION TAX – AND NO ONE IS TELLING YOU!
Most people know that Costa Rica´s new corporation tax (Ley de Impuesto de Personas Jurídicas Ley 9428) took effect September 1, 2017 and must be paid by Monday October 2, 2017 to avoid fines and interest. What most people don´t know is that if your corporation is not inscribed in the Regístro Único Tributario (i.e. it is inactive), then you are obligated to file a Form D-140 Declaración de Modificación de Datos de Contribuyentes (Contributor Change of Information Declaration) according to a rolling schedule between October 2017 to February 2018 (depending on the last digit of the cédula jurídica of their company. Failure to do so will result in a fine for your corporation. I will explain the important points of the new law, including the obligation to present Form D-140 below.
- How much is the tax? The tax due is based on the gross income of the company. Below is a chart showing the amounts owed at different gross income levels.
|Gross Income Level||Tax Due|
|Registered Active – No Income||¢63.930|
|Registered Active with gross income less than ¢50.880.000.||¢106.550|
|Registered Active with gross income between ¢50.880.000 and ¢118.720.000.||¢127.860|
|Registered Active with income greater than ¢118.720.000.||¢213.100|
- When is the tax due? The tax is due annually on January 1st and must be paid before January 30. For 2017, the tax will be prorated and must be paid before October 2, 2017.
- Where can I pay it? You can pay the tax on line through Internet Banking if you have an account with BCR, BAC San José, BCT, Davivienda, or in person at the same locations.
- What happens if I don´t pay? A fine will apply if you do not pay within 30 days of the tax being due (October 2 for 2017 and January 30 for subsequent years). In addition, you will not be able to pull a personaría or certificacion literal from the registry if the tax is not paid. Corporations that do not pay for three consecutive periods can be dissolved and liens put on any property owned by the corporation. The last recorded shareholders or officers of the corporation will be responsible for the debt if the corporation does not have assets to pay it.
- Do I still have to pay the tax for years 2012 to 2015? Yes, you do.
- Is there an amnesty period for the years 2012 to 2015? Yes there is. You will only have to pay the past tax (fines and interest will be forgiven) for years 2012 to 2015 if you pay before November 30, 2017.
- Is there anything else I need to know? YES!!!! Active corporations already inscribed with the Hacienda´s Registro Unico Tibutario (RUT) will automatically be inscribed, but need to verify their domicile, email and other required information. Any changes should be submitted on Formula D-140. Those corporations in the process of inscription or those corporations that are inactive, must file a D-140 to register with the RUT (even if they plan to remain inactive) according to the following schedule depending on the last digit of the company´s cédula jurídica:
Cédulas jurídicas that end in 1 or 2: must register during the month of October 2017.
Cédulas jurídicas that end in 3 or 4: must register during the month of November 2017.
Cédulas jurídicas that end in 5 or 6: must register during the month of December 2017.
Cédulas jurídicas that end in 7 or 8: must register during the month of January 2018.
Cédulas jurídicas that end in 9 or 0: must register during the month of February 2018.
Failure to register within the prescribed time will result in a fine.
Those are the important points of the new corporate tax law.