Resolution on the obligations of tax registration and filings for inactive companies

Under the recent Costa Rica Tax Reform, the concept of taxpayer for income tax purposes was extended after July 1, 2019, considering as taxpayers all legally incorporated entities, regardless of whether they perform or not any economic activities, including professional activity entities, government-owned companies, collective entities without legal representation and participation accounts existing in Costa Rica. After this amendment, all legal entities are considered taxpayers for income tax purposes, regardless if they were considered inactive entities in the past.

Through a general resolution published on December 20, 2019, the following formal obligations for inactive entities were imposed starting this month (January, 2020):

  • Registration obligation: Inactive entities must get registered before the Tax Registry of the Tax Administration.
  • Tax return filing obligation: These entities must make an annual filing detailing all their assets, liabilities and equity, using a new tax form.

With respect to the registration obligation indicated in the first item above, companies must fulfill the registration according to the last number of their corporate ID number:

  • January 2020: Corporate ID´s ending in 1 and 2
  • February 2020: Corporate ID´s ending in 3 and 4
  • March 2020: Corporate ID´s ending in 5 and 6
  • April 2020: Corporate ID´s ending in 7 and 8
  • May 2020: Corporate ID´s ending in 9 and 0

Dentons Muñoz has an interdisciplinary team of tax professionals to support you in making decisions and complying with these new tax obligations.

About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.