If you have a corporation, or several, in Costa Rica, be aware that as of September 1st the government will charge the annual corporation tax.

For 2017 the amount will be prorated, meaning you will only have to pay September 1st through December 31; therefore this year’s amount is less, ranging from 21,308.00 colones (close to $38.00) for an inactive corporation, to 71,026.00 colones ($125.00 approx.) for an active corporation in the highest tax range.

The payment of this tax can be done through the different banks or directly at the National Registry with the company ID number (cédula jurídica).

The amount each corporation pays will depend on how it is classified in the National Registry, active or inactive; the government calculated the amount based on a percentage of the base salary of a government employee; for this year that base salary is 426,200 colones; an inactive corporation will pay 15% of this base salary (63,930 colones); active companies will pay a percentage based on their gross income; for example, companies that gross less than 50.8 million colones (approximately $89,300.00 at 570/$1) will pay 25% of the base salary (106,550 colones or $187.00 approx.); if the gross income is more than $89,300.00 and less than $208,280.00 (approx. depending on exchange rate applied) the amount to pay is of 30%, meaning 127,860.00 colones (approximately $225.00); corporations reporting an income of over $208,280.00 will be charged a 50% of the base salary which is equivalent to 213,100.00 colones , close to $374.00.

When it comes to the taxes for previous years, there is no obligation to pay 2016 since this was the year it was suspended for revision; but if you didn’t pay the taxes from 2012-2015 and want to keep your corporation, these back taxes will have to be paid, however, if you pay before September 30,2017 you will not be charged any interests on this past periods.

The only companies that are exempted from this payment are small and medium size companies registered as such in the Ministry of Economy, Industry and Commerce, and agriculture producers registered in the Ministry of Agriculture and the Revenue service.

Those that don’t comply with the payment by the established date will be charged daily interests which represent in a year an 11.73% over the tax amount, companies that are not up to date with the tax payment will not be allowed to participate in any public tender and cannot make any legal changes to their corporations.

The law is granting twelve months to companies that have been inactive for the two previous years and wish to transfer over vehicles or properties to a personal name or another corporation exempt from the property transfer taxes.

Those legal representatives or members of Boards of Directors that wish to resign their position can do so unilaterally in a 24 month term, check with your lawyer for further details on this procedure.

If you have any questions please seek legal advice.