Corporate Taxes in Costa Rica: What, Where, When, and How (2017 Guide)

As part of our desire to provide the best and most reliable service to our clients, we put together the following information on upcoming requirements for Costa Rican corporations. We wanted to share this with our readers in hopes it could be of use. As always, if you have any questions or feel we could be of service to you, please reach out to us directly by phone or email.

This article explains corporate taxes in Costa Rica, including applicable taxes, annual fees, filing obligations for inactive corporations, and other legal requirements that corporations needed to comply with starting in 2017.

1) Corporate Taxes in Costa Rica (As of September 2017)

As of September 1, 2017, the corporate tax for Costa Rican corporations has started again. The tax is approximately $40.00 USD (₡21,308 CRC) for 2017.

This tax can be paid:

• Online, using banking websites such as Banco de Costa Rica (BCR)

• In person at the bank

In order to avoid interest charges, it is prudent to pay this tax as soon as possible, or by the end of September at the latest.

Please be aware that Banco de Costa Rica has experienced issues processing these payments, and you may need to try another bank if you encounter difficulties.

2) Annual Corporate Fees in Costa Rica

In addition to the corporate tax, corporations are required to pay annual fees depending on their status and level of activity. The yearly fees for the coming year are as follows:

• ₡63,930 CRC for inactive corporations

• ₡106,550 CRC for active corporations

• ₡213,100 CRC for active corporations with revenues over ₡119 million CRC

These fees apply regardless of whether the corporation owns assets, provided it remains legally registered.

3) Inactive Corporations and the D-140 Filing Requirement

All inactive corporations that wish to remain inactive must file a D-140 form.

An inactive corporation is one that is not currently doing business and therefore does not generate income subject to income tax reporting and payment.

The law requires the D-140 form to be:

• Signed by the legal representative of the corporation

• Notarized by a notary public or lawyer

• Filed with the tax authorities (Tributación)

Due to the large number of corporations registered in Costa Rica, the government requires corporations to file the D-140 form during a specific month. The assigned filing month is based on the last digit of the corporate ID number.

If you need assistance determining when your corporation must file, please contact us. Filing the D-140 form is mandatory, and failure to file on time will result in fines.

D-140 Filing Schedule by Corporate ID Number

• Corporations ending in 1 or 2: October 2017

• Corporations ending in 3 or 4: November 2017

• Corporations ending in 5 or 6: December 2017

• Corporations ending in 7 or 8: January 2018

• Corporations ending in 9 or 0: February 2018

4) Other Legal Requirements for Costa Rican Corporations

Please remember the following additional legal obligations:

• Corporations are required by law to hold an ordinary General Assembly meeting within the three months following the close of the fiscal year (September 30).

• Property information must be updated with the Municipality every five years. This requirement is separate from property tax payments.

• If your corporation is behind on corporate taxes from previous years, the National Registry may initiate collection actions, including:

  • Placing liens on assets registered to the corporation

  • Dissolving corporations within the following three months

Final Notes

Corporate compliance in Costa Rica involves more than simply paying an annual tax. Filing requirements, annual fees, and corporate formalities all play an important role in keeping a corporation in good standing.

If you have any questions or concerns, please do not hesitate to reach out to us for a consultation. We are here to help.