Costa Rica: Ultimate beneficial ownership rules and other developments

While an entity’s corporate identification is in force, it must comply with the ultimate beneficial owner registry rules

Comply with ultimate beneficial owner registry rules and payment of corporate flat tax

Recent tax developments in Costa Rica include the following:

  • The tax administration issued a communication (Number 116 on 8 September 2021) announcing that over 76,800 legal entities are to be dissolved because of the nonpayment of the corporate flat tax for at least three consecutive periods or more.
  • The tax administration issued a statement (DGT-964-2021) confirming that while an entity’s corporate identification is in force, it must comply with the ultimate beneficial owner registry rules and the payment of the corporate flat tax.
  • The Constitutional Chamber of the Supreme Court of Justice issued a resolution regarding the requirements for employers for letters of dismissal. The resolution indicates that an employer must detail the reason for the dismissal. The document identifying information is: Resolution No. 12547-2021 (1 June 2021)

Read a September 2021 report (Spanish and English) [PDF 504 KB] prepared by the KPMG member firm in Costa Rica


Additional developments include:

  • The General Direction of Tax (La Dirección General de Tributación) announced that the period for the partial payment of rent expires 30 September 2021. This payment consists of a mandatory income tax advance to be made by the taxpayer.
  • The Ministry of Finance provided information about queries or claims made by representatives of legal persons with regard to the dissolution of companies for the non-payment of taxes for at least three consecutive periods.
  • The tax administration reported that for the first half of 2021, it has monitored approximately 2,400 taxpayers that were reported for the non-issuance or delivery of electronic invoices.

Read a September 2021 report (Spanish and English) [PDF 449 KB] prepared by the KPMG member firm in Costa Rica

 

 

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