Avoid penalties and comply on time
In Costa Rica, all commercial companies and subsidiaries of foreign companies are required to pay the Education and Culture Stamp (TEC), an annual tax aimed at financing activities related to education and culture in the country.
What is the Education and Culture Stamp (TEC)?
The TEC is a mandatory tax applied to:
- Commercial companies: Legally constituted businesses in Costa Rica.
- Subsidiaries of foreign companies: Legal representations of foreign businesses registered in Costa Rica’s Public Registry.
When is payment due?
The deadline for payment of the TEC is from February 1 to March 31 each year. It is crucial to make the payment within this period to avoid penalties and ensure that the company continues to operate normally.
How is the amount to be paid calculated?
The TEC amount varies between ₡5,000 and ₡18,000, depending on the net social capital declared by the company. The calculation table is progressive and established by law, ensuring that the payment is proportional to the financial capacity of each company.
Consequences of late payment
Failure to pay the TEC within the established deadline can have serious repercussions:
- Interest: A 10% annual interest is applied to the outstanding amount.
- Late payment penalty: A 1% penalty of the unpaid amount is charged for each month of delay, up to a maximum of 20%. Note: Any fraction of a month is considered a full month for the penalty calculation.
- Administrative impediments: Non-compliance can make it difficult to carry out legal and administrative procedures related to the company.
Don’t let time catch you by surprise. Contact our team of lawyers and ensure the efficient management of all your company’s tax matters.
