Costa Rica: San José • Flamingo • Tamarindo • Nosara

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Proposed new regulation for the informative tax declaration of inactive legal entities

March, 2023

In the previous post we told you some generalities that are taking place around the Declaration of Inactive Companies in Costa Rica.  Now we will share with you the relevant and central aspects proposed.

The inactive companies would no longer use the same tax form D-101 that active companies with lucrative activity use, but a specific form called "Informative Declaration of Inactive Legal Entities D-195."

The legal representatives shall submit the tax form by April 30 of each calendar year.

The summarized informative form D-195 must reflect the corporate assets and obligations corresponding to the ordinary fiscal period of the tax on the previous year's profits, which covers from January 1 to December 31 of each year.

The D-195 will be available on the digital platform "Virtual Tax Administration ( ATV)" from the official website of the "Ministerio de Hacienda."

Non-compliance will carry heavy fines and penalties. 

 


 


Companies that receive capital income subject to unique and definitive withholdings to avoid being considered inactive must register the activity they carry out in the Single Tax Registry (RUT) and keep the information of address, email, and other required data updated.

Tax Administration will unregister ex officio the companies that have been legally liquidated or dissolved with the mere verification of their legal status duly registered before the Mercantile Registry of the National Registry.
 
Inactive companies that, on the effective date of the approved resolution, have already complied with their formal duty of the informative declaration corresponding to the ordinary fiscal periods 2020, 2021, and 2022 income tax using form D-101 will not have to file it again using form D-195
 
 

Please consider that you must hire a CR accountant to submit this tax filing, as the balance sheet and corporate accounting records are mandatory. Your accountant or authorized person will access the ATV -tax site for online tax submission- to submit the forms on behalf of your corporation

The corporate books shall be updated with the same information declared on the tax forms to reflect all agreements related to the corporation's balance, assets, liabilities, and equity value.

We at GM Attorneys will be pleased to help you with your legal matters in Costa Rica! Please feel free to contact us at info@gmattorneyscr.com or visit our blog section 

 

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