The definition of an inactive corporation is "…those companies incorporated in the country that do not have lucrative, income-producing activity of a Costa Rican source." This includes all commercial companies, branches of foreign companies, and individual limited liability companies. Also, the corporations holding real estate or vehicles for land (car), sea (boat), or air (plane).
Obligations for Inactive Corporations:
- Per the resolution (N° DGT-R-02-2021), published on January 12th, 2021, inactive corporations require to register with the Tax Office in the Single Tax Registry (RUT). In the RUT, these corporations must be registered under code number "960113" by submitting the form D-140 "Declaración de Inscripción en el Registro Único Tributario". This form covers information such as who is the legal representative, address data, contact information, etc. Also, submit annual returns of their assets, liability, and shared capital. In the past, only corporations that were active or producing income had a filing obligation with the Tax Office.
- Per the resolution (MH-DGT-RES-0007-2023), published on March 29th, 2023, the Inactive companies that 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, for those periods.
The Form D-195, "Declaración Informativa Personas Jurídicas Inactivas". This form is a declaration of 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 Forms are available on the digital platform "Virtual Tax Administration (ATV)" from the official website of the "Ministerio de Hacienda.
Deadline: The legal representatives shall submit the tax form by April 30 of each calendar year.
The first filing for the "inactive corporations" this year will be due on May 31st, 2023.
Please consider that you must hire a CR accountant (CPA) 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.
Non-compliance will carry heavy fines and penalties, up to ¢1,350,600 colones or $2,390 USD or greater.
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