The period for declaring and paying the Income Tax for the 2024 fiscal year is open from January 1 to March 15, 2025. This tax is essential for fulfilling the fiscal obligations of both individuals and companies in Costa Rica. Below, we provide a complete guide to understand and comply with this obligation.
What is the Income Tax?
The Income Tax is a tax levied on the profits or earnings of individuals and businesses. It applies to:
- Individuals: Income derived from salaries, rentals, investments, or other profitable activities.
- Companies: Profits obtained from business activities carried out in Costa Rica.
Payment Scales for the 2025 Fiscal Year
For Individuals – Monthly Income Brackets:
| Gross Monthly Income (Colones) | Tax Rate |
|---|---|
| Up to ¢922,000 | 0% |
| ¢922,001 – ¢1,352,000 | 10% |
| ¢1,352,001 – ¢2,373,000 | 15% |
| ¢2,373,001 – ¢4,745,000 | 20% |
| Over ¢4,745,000 | 25% |
For Companies: A flat rate of 25% is applied to the taxable net income.
Consequences of Non-Compliance
Failing to declare or pay the Income Tax on time can result in:
- Fines for failing to declare or pay.
- Late interest, which increases the amount owed over time.
Recommendations to Comply with Your Tax Obligations
- Organize your financial information: Make sure you have all necessary documents to accurately calculate your net income.
- Review the income brackets: This will help you determine the applicable rate based on your income.
- Seek professional advice: Having expert support on tax matters can ease the process and avoid costly mistakes.
- Don’t leave it until the last minute: Remember, the declaration deadline is March 15, 2025.
At ERP Lawyers, we are committed to providing you with the necessary support to meet your tax obligations efficiently and on time. Contact us if you need personalized advice.
