• Costa Rica Real Estate

Tax on Costa Rica corporations is unconstitutional, says court

January 29, 2015

The Constitutional Chamber of the Supreme Court, or Sala IV, on Wednesday evening ruled three articles of the country’s Corporate Tax Law unconstitutional, and as a result, collection will be suspended starting next year.

The Sala IV ruling notes that taxpayers still are obliged to pay the relevant taxes for the current period by this Saturday’s deadline.

According to the ruling, a procedural error occurred in the approval of the law, which created the tax in question in 2011. A version of the approved bill was published in the official newspaper La Gaceta, but lawmakers amended several articles and the changes were never published, the Sala IV stated.

Justices found the drafting of articles 1, 3 and 5 unconstitutional. Those articles outline the implementation of the tax, its rates and sanctions for tax dogding.

Modifications also included the adding of new sanctions that were not included in the original drafting of the law.

Sala IV’s ruling also states that in order to avoid problems or misinterpretations, taxes for the fiscal year 2015 must be paid. Tax collection will be suspended from 2016.

The Corporate Tax Law was approved on Dec. 23, 2011, and up to 95 percent of funds are supposed to be invested in public security programs.

Before the ruling, the tax had to be paid every January by all corporations registered in the National Registry. This month, active corporations must pay ₡201,700 ($380) per year, and inactive corporations, or those that do not earn a profit, pay ₡100,850 ($190). All payments must be made at Banco de Costa Rica branches. Banco de Costa Rica customers can pay the tax online at the bank’s website.

According to the National Registry, 545,000 corporations are registered in Costa Rica. A Jan. 14 report stated that fewer than 6 percent of taxpayers had paid it.

You may be interested

Costa Rican health authorities plan precautions in response to Chinese coronavirus
Global health
5 views
Global health
5 views

Costa Rican health authorities plan precautions in response to Chinese coronavirus

The Tico Times - January 20, 2020

Put down that cerveza, because this Corona is a little more serious. Costa Rican health authorities joined an international chorus…

Costa Rica limits the right to strike and prohibits it in essential services
Costa Rica
16 views
Costa Rica
16 views

Costa Rica limits the right to strike and prohibits it in essential services

AFP and The Tico Times - January 20, 2020

The President of Costa Rica, Carlos Alvarado, approved on Monday a law passed by the Legislative Assembly that sets limits…

Pompeo visits Colombia, where he will meet with Guaidó
Colombia
16 views
Colombia
16 views

Pompeo visits Colombia, where he will meet with Guaidó

Alina Dieste / AFP - January 20, 2020

The head of US diplomacy, Mike Pompeo, will meet on Monday in Colombia with the Venezuelan opposition leader Juan Guaidó,…

Do NOT follow this link or you will be banned from the site!