New taxes and Requirements for Corporations in Costa Rica

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As of September 2017 there is a new, one-time only, requirement for ALL Costa Rican corporations, including inactive ones, to file a D-140 tax registration this year. Failing to file the D-140 results in a fine of approximately USD$80 to USD$400 for each month of delay with filing, to a maximum of approx USD$2,250. The deadline for filing is based on the last number of your corporate ID number.

For corporate ID numbers ending in 1 or 2, the deadline is OCTOBER 31, 2017.

For corporations ending in 3 or 4, deadline is Nov. 30, 2017.

For corporations ending in 5 or 6, deadline is Dec. 31, 2017.

For corporations ending in 7 or 8, deadline is Jan. 31, 2018.

For corporations ending in 9 or 10, deadline is Feb. 31, 2018.

Most corporate owners who live in Costa Rica are running to file the D-140’s on time to avoid the fines, but many foreigners are not even aware of this new requirement, especially as it pertains to inactive corporations, which previously were not required to file anything.

We are being proactive in helping our clients who live out of the country to file these forms from afar and avoid the fines. This is not easy to comply with from afar, especially due to the requirement that the form can only be signed by the legal representative of the company, or by someone with a special power of attorney from the legal representative. The solution is to issue a limited power of attorney to a certified accountant, only for the purpose of filing the tax form, so that the accountant can fill out and sign the forms. The completed form then has to be delivered in person to the service desk of an office of Ministerio de Hacienda, which the accountant does as well.

Please note that if you owe back corporate taxes, they will need to be paid as well, before the accountant can access the on-line corporate information needed to complete the filing. The corporate tax was reinstated as of September 1, 2017. If the back taxes are paid by December 15, 2017, the interest on past due taxes is waived. The corporate tax can be paid at any bank in Costa Rica.

Please review your corporations and make sure to file on time to avoid the hefty fines. We strongly recommend you hire a certified accountant or a lawyer to fill out the form and file it for you to the Minister of Hacienda.

If you do not live in Costa Rica, and need help filing this from out of the country, you can contact us.