New Obligations for Inactive Corporations
The Costa Rican tax administration, Ministerio de Hacienda, has implemented new decrees to control the legitimization of capital and root out illicit financial gains through corporations in Costa Rica.
On January 22, 2021, the new resolution DGT-R-02-2021 was announced, which modifies the previous resolution DGT-R-075-2019. This 2021 resolution ratifies that “inactive corporations” (not generating income) are required to:
- register with the Ministry of Finance in the Single Tax Registry (RUT) under code number 960113
- 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.
The new law requires two forms to be completed and filed: D-140 and a separate form yet to be determined. There are heavy fines for failure to comply, from USD $500 to $75,000.
Inactive corporation is defined as: “…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.
Two steps are required to be in compliance with the new law:
- File form D-140 “Declaración de Inscripción en el Registro Único Tributario,“ via the Virtual Tax Administration (ATV) available on the website www.hacienda.go.cr. This form covers information such as who is the legal representative, address data, contact information, etc.
- File another tax form, to be defined, that also will be available via ATV. This new form will be a simpler version of the D101 form, currently used for active CR corporations, to declare assets, liabilities and shared capital for any and all CR corporations.
The process to file and submit these tax forms is through the tax department’s online ATV portal referred to above. Taxpayer access to an ATV account is only possible if you:
- have a CR identification card or residency card,
- apply for a taxpayer identification number (NITE) and you have a digital signature card.
If for any reason you cannot get access to ATV, then an authorized person or accountant must access the account to file the forms on behalf of your corporation.
The corporate books should be updated with the same information that will be declared on the tax forms, in order to reflect all agreements related to the corporation balance, assets, liabilities and equity value.
The first filing for inactive corporations will be within 2.5 months from the notification date when the tax office makes the new tax forms available. This is expected to be sometime within the second or third quarter of 2021.
The details of this law can be complex and we are here to answer any questions you may have. Please feel free to contact us at firstname.lastname@example.org