The Costa Rican government pass a modification to the law for “Simplification of Tax Procedures for legal entities without lucrative activity” With this regulation, important modifications are introduced to subparagraph a) of article 2 of Law No. 7092, Income Tax Law, in order to eliminate the condition of “taxpayers” for inactive entities, so that they become to be considered mere filers, no longer related to income tax. 

Furthermore, the term for inactive entities to comply with the obligation to present the declaration of their assets, liabilities and share capital within the system is extended for three months. The previous deadline was March 15th, 2022, the new one is June 11th, 2022.

The news will be received with relief by many entity owners that were not even aware of this new requirement, which if not complied with could lead to fines of up to three base salaries, approximately ¢1,400,000 (about US$ 2,200). However, if you miss the deadline but you pay before it is charged by the Tax Authority an 80% discount of the fine may apply.

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