Every business in Costa Rica needs a license to operate under the regulations of the local government, known as La Municipalidad, like zoning and environment protection.

When you started your business in Costa Rica you had to go through a whole process in order to get your license, which is mandatory to run any kind of business in Costa Rica, but that is not the end, you must file a yearly Business License Tax Return.

Since there are 81 Municipalidades in Costa Rica the tax rates and deadlines may change from one Municipalidad to another, but let’s use the San Jose Municipalidad as a sample:

The deadline is January 15th for businesses who’s fiscal year ends on September 30th. For business with fiscal year ending on December 31st, then the deadline is April 15th. (Hmmmm! That date sounds familiar).

The current rate is 0.35% per year over the gross income of the last fiscal year.

Once you file the tax return, the Municipalidad will update their records and then you will have to pay the tax on a quarterly basis, according to the next schedule, which applies for all of the Municipalidades:

• March 31st
• June 30th
• September 30th
• December 31st

The forms are always available at the local Municipalidad, this is a simple form but it is very important in order to keep you business in good shape when it comes to the local government, a business without license can be simply closed by the Municipalidad.

Written Randall Zamora, President and CEO of Costa Rica ABC, a former CFO of multinational companies like Health Care Merger Inc and Four Seasons Resort Costa Rica, with twelve years of experience in accounting, management and tax advisory. Randall is fluent in English and is our Preferred Professional for Costa Rican tax matters.

PS. If you would like to receive Randall’s Top Ten Costa Rica Tax Tips report, please use the form below:

Written by Randall Zamora who is the President and CEO of CostaRicaABC.com, former CFO and Head of Accounting Department of multinational companies like Four Seasons Resort Costa Rica, active member of the Interamerican Accounting Association, Pro Bono Local Partner of The World Bank and contributor to their yearly publication “Doing Business Report.”

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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.