• Costa Rica Coffee Guide

New corporate tax to start

March 30, 2012

From the print edition

On April 1, people possessing corporations in Costa Rica will have to start making decisions about their assets and possibly their businesses. The new law will impose a yearly fee on both active and inactive corporations. An inactive corporation is one that does not earn profit, commonly used in Costa Rica to hold assets, while an active corporation is registered with the Tax Administration and earns income.

The new fee is based on the salary of a level-one administrative assistant at the Legislative Assembly, which for 2012 is $702. An active corporation will have to pay 50 percent of that base salary, or $351, while an inactive corporation will pay 25 percent, or $176. 

Payment is due in January for the preceding calendar year, but for the first year only 75 percent of these amounts will need to be paid, because the law takes affect in April.

To avoid paying the tax on a corporation for 2012, such as an inactive one that does not hold any assets, the corporation must be cancelled before July 1. Lawyers are charging roughly $150 to process cancellations.

Corporation holders also have until Oct. 1 to transfer any assets out of their corporations to themselves as individuals or to other corporations to avoid paying the transfer taxes. For help, contact tax specialist Jorge Granados at 2288-2201.

You may be interested

Nearly 100 locations now offer antigen tests for travelers in Costa Rica
Costa Rica
3271 views
Costa Rica
3271 views

Nearly 100 locations now offer antigen tests for travelers in Costa Rica

Alejandro Zúñiga - February 26, 2021

Several countries, including the United States, require that returning travelers test negative for the coronavirus. More than 100 labs in…

Costa Rica Covid-19 information from the U.S. Embassy
Costa Rica
1473 views
Costa Rica
1473 views

Costa Rica Covid-19 information from the U.S. Embassy

The Tico Times - February 26, 2021

The United States Embassy on Friday issued a summary of Costa Rica's coronavirus measures that our readers may find helpful.…

Costa Rica will (finally) support contactless payments on public transport
Costa Rica
1149 views
Costa Rica
1149 views

Costa Rica will (finally) support contactless payments on public transport

Alejandro Zúñiga - February 26, 2021

Costa Rica's next step toward modernizing its public transport system will be to allow contactless payments. The Railway Institute (INCOFER)…