Costa Rica: Reminder of requirement to report ultimate beneficial owners

Required information about ultimate beneficial owners due by 30 April 2022

Required information about ultimate beneficial owners due by 30 April 2022

Legal entities, private trusts, non-profit organizations, and third-party resource administrators must provide by 30 April 2022 the required information about their ultimate beneficial owners to the platform managed by the Central Bank of Costa Rica.

The registry of ultimate beneficial owners was established to comply with international standards and recommendations regarding tax and financial transparency and provides tax administrators with relevant and timely information for the fight against tax evasion, tax fraud, and money laundering.

Failure to comply with the reporting requirement may result in the following sanctions:

  • Penalty of 2% of the gross income of the legal person or legal structure in the profit tax period prior to that in which the infraction occurred.
  • The National Registry may not issue certifications of legal status or register documents for those who fail to provide information.
  • Public notaries must record in the documents they issue any breach by the parties of the law requiring reporting.

A release from Central Directo (CD-008-2022 dated 31 March 2022) provides that both the special powers of attorney and the authorizations granted that have been registered before 1 April 2022 and that have already been used will remain disabled. Therefore, the corresponding special powers of attorney must be granted again for the presentation of the ordinary declaration for the 2022 period.

Read an April 2022 report prepared by the KPMG member firm in Costa Rica

 

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