Costa Rica passes an Annual Corporation Tax which will begin on 1st April 2012

We have time. The law has built into it some grace periods. The law comes into effect on April 1, 2012 and has a six month grace period to transfer assets out and a 3 month grace period to dissolve the corporation.

1. Transfer Asset out. Inactive companies will be exempt from transfer taxes and registration fees for a one time transfer to an individual or another corporation.
2. Dissolution. Corporations which are dissolved during themonths of April, May and June will be exempt from paying the tax.
3. Corporate Officers and Directors will have one (1) yearin which to resign from their positions.

Due date. The tax will be due by April 1, 2012 this year only after that it will be due January 1st of each year. For this year the proportional amount due will be:

Active: c135,000 [$267]

Inactive: c67,500 {$134]

How Much?

The law imposes an annual corporation tax on active and inactive corporations.

Active: c180,330 Colones [US$357]

Inactive: 90,175 Colones [$178.50]

The amount of tax to be paid is actually based upon the base salary of a government employee.

Active is 50% of base salary and inactive is 25% of base salary. As such the amounts will change as the base is adjusted. Also keep in mind the exchange rate as well.

Sanctions and Fines:

1. Once the grace period is over. The legal representatives of the corporations will be PERSONALLY liable for any outstanding annual tax.
2. Interest Penalty and Fines set forth in the Tax Code area applicable as well.
3. National Registry will not issue certificates of standing nor record any documents related to corporate modifications if the annual tax is outstanding.

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Written and copyright by Attorney at Law – Roger A. Petersen. Roger has been an attorney since 1992 and is a member of both the Costa Rican and Florida Bar. He practices law in San José, Costa Rica and is the author of the best-selling book The Legal Guide To Costa Rica which you can order from Barnes & Noble here or from Amazon.com here. Attorney Petersen’s website can be found at Petersen & Philps Law Offices.




To speak with Attorney Roger Petersen about hiring him as your Costa Rica attorney, please contact him using the information below:

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.