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If you own an active or non-active corporation, you will want to know how much corporation tax Costa Rica (in Spanish: impuesto a las personas jurídicas) must be paid this year. The 2023 corporation tax 2023 must be paid before January 31st, 2024. Those who fail to comply with this obligation are subject to the payment of interest and the penalty for late payment under the Code of Standards and Procedures provisions and even to the dissolution of the company when the tax is not paid for three consecutive periods.
The article is a must-read for those who really don’t know if they bought a property in our beautiful country in the past by taking over an existing corporation or starting a new one. If you purchased a property in your name or a family member’s name, everything below is unimportant information for you.
For those who are uninformed: For many years, lawyers in Costa Rica recommended property buyers to hold property ownership in a corporation. I won’t get into this now, but you can read up on that here. Also, it’s interesting to read what attorney Rick Philps thinks about holding assets in a corporation from now on; click here.
Some property owners, especially those who don’t live here, don’t know that the corporation tax was created in December 2011 through tax law number 9024.
When and what to pay
The Corporation Tax Costa Rica must be paid annually for the first 30 days after January 1st. Active corporations pay a little bit more than inactive ones. Check here how much to pay in January 2024.
For 2023, the basic salary of ¢462,200 is used. For 2023, the tax to pay is:
a) 15% of the basic salary for those corporations not registered in RUT (inactive corporations) = ¢69,330
b) 25% of the basic salary for those corporations that pay income tax, with a gross income of less than 120 basic salaries. – impuesto sobre la Renta (active corporations) = ¢115,550
c) 30% of the basic salary for those corporations that pay income tax, with a gross income between 120 and 280 basic salaries = ¢138,660
d) 50% of the basic salary of those corporations that pay income tax, with a gross income of 290 salaries or more = ¢231,100
Where to pay
Unfortunately, the government doesn’t make it easy for those who do not live here to pay the corporation tax Costa Rica. You can pay the tax at a Banco de Costa Rica (BCR) agency or online at bancobcr.com. If you’re not in Costa Rica or don’t have an account at the BCR, you will need assistance to pay. If you’re not a resident, you need help with your RTBF or Registro de Transparencia de Benificiarios Finales; click the banner below.
Assistance
If you are not a citizen or resident of Costa Rica and own a corporation, click on the banner below.
It’s important to understand that owning a corporation here means you have many more obligations now than before. These obligations include
- Registering form D140
- Paying annual corporation tax
- Filing shareholders with the Central Bank (RTBF)
- Mandatory digital signature
- and various others
Legal Mortgage
Corporations that owe over a year of Corporation Tax Costa Rica probably have a legal mortgage lien. This lien will show in the National Register as “HIPOTECA LEGAL LEY 9024 “. You cannot sell property with this legal mortgage, so contact your lawyer.
How to dissolve your unused corporation
If you own a corporation but are not using it, you’d want to dissolve it. Obviously, you don’t want to keep paying the corporation tax every year. Just ask your attorney to dissolve the corporation.
Are you planning to purchase property in Costa Rica? Ask your attorney about the advantages and disadvantages of holding your assets in a corporation and your options. Looking to buy a property in the Central Valley of Costa Rica? Then I suggest you hire the experts, contact us now.
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