2019 Corporation Taxes and Registration

Most individuals who own property here in Costa Rica do so under a corporation name. This means you pay corporation tax every year. In 2018, there were revisions made to the laws which require you to submit a form and pay taxes. See our article on what was done last year to get a better understanding of the history.

If you haven’t done so already, you will need to complete the D-140 tax form and submit it to the Tax Administration. The D-140 tax form is a registration of your corporation and MUST be completed for EVERY corporation by someone AUTHORIZED to conduct business for that corporation. It does NOT matter whether the corporation is ACTIVE or INACTIVE – the form still needs to be completed and submitted. (Note: YES, this includes corporations that are ONLY used to hold property, vehicles or bank accounts.)

If you did NOT submit this form last year, there is an amnesty which might save you costs in interest and fines, but it expires on March 4th, 2019. The following are the timeframes and costs associated with filing:

1. Submit the form before February 4, 2019 pay only 20% of the fine without interest
2. After such date and March 4, pay 30% of the fine without interest

The fine is approximately $700 U.S. dollars so you either pay 20% or 30% of it. But to do this before February 4th, you need to go in person to the Tax Administration office. Summerland Relocation Services (SRS) can act as a power of attorney granted by your corporation if appearing in person is not an option for you at this time.

SRS offers a full service to help you pay your corporation taxes. List us as your power of attorney and we can get the job done for you without any hassle or confusion. Looking to be a bit more independent, but need a bit of help? We will go with you and walk you through the process until it is finished and make sure you know what to do for next year. SRS is here to help!

Read the blog on our website. For complete details or assistance, email us.