Tax on Legal Corporations
Corporation taxes came into force on April 2012, which applies to all legal entities that are duly registered in the Costa Rican Public Registry (e.g. “S.A.”, “LTDA”, among others), as well for those corporations that are in the process of being registered or that will be registered in the future.
There is a difference in the amount to be paid per year, depending if they appear as active or inactive contributors before tax authorities:
- Corporations which are contributors will pay 50% of the base salary, on an annual basis.
- Corporations which are not contributors or are inactive will have to pay 25% of the base salary, on an annual basis.
All corporations must pay this tax on or before January 31st of each year during the existence of the company, and the tax can only be paid through the Bank of Costa Rica. This tax will not be deductible as an expense from the Income Tax.
Liability, fines and penalties
It is important to emphasize that the corporation Legal Representatives will be held responsible in case of default on the payment of said tax. Also, in case that the tax is not duly paid the Public Registry will not issue any Certificate of Incumbency nor will record any kind of document for the default contributor. In the same way, defaulting taxpayers will not be able to contract with the Public Administration.
Failure to pay this tax for three consecutive terms shall be grounds for the automatic liquidation of the corporation. The Public Registry will send the notice of dissolution to the official newspaper, La Gaceta and shall cancel the registration and will place a lien on its goods. The debts arising from this tax will form a legal preferred mortgage or pledge, in the case of real or personal property owned by the corporation.
El no pago del impuesto establecido en la ley por tres períodos consecutivos será causal de disolución de la sociedad, por lo tanto, el Registro Nacional procederá a la cancelación de la inscripción y anotación de bienes; constituyéndose una hipoteca o prenda legal preferente sobre los bienes de las sociedades mercantiles o sus representantes.