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Inactive Corporation Tax Return Declaration 2022 - Caribbean Property Management Services in Costa Rica - Green Management
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Inactive Corporation Tax Return Declaration 2022

As of January 1, 2022, the Simplified Income Tax Return (D-101) was made available to inactive companies.

The Costa Rica Department of Treasury has finally sorted out its inconsistency and confusion surrounding the new legal obligation for companies that are “inactive” to file a tax return.  In the past, this has not been an obligation because inactive companies do not carry out any business or trade and instead, generally act as an asset holding company only.  Despite this, the government wants to collect all information regarding all the assets that inactive companies are holding.

For that reason, in 2019 by way of resolution DGT-R-075-2019, the government created the obligation for all “inactive” companies to file an asset declaration form.  However, it never provided the public with the specific form. Instead, in 2020 they issued another resolution, No. DGT-R-38-2020 which indicated that there would not be a specific declaration form and instead all inactive companies should file a regular Income Tax Return form D-101 which is used by all companies and commercial entities that generate income. 

You can find more information about this on this article by Roger Peterson on his website: https://costaricalaw.com

To fulfill this duty you must take into account:

  1. You will have a maximum term of two months and fifteen days, which expires on March 15, 2022 to file the declaration.
  1. In order to present the declaration before the Dirección General de Tributación, the taxpayer must have updated the data of the fiscal address and legal representation.
  1. Both the updating of data and the presentation of the return must be done through the Virtual Tax Administration (ATV) portal, located on the website of the Ministry of Finance (www.hacienda.go.cr).

Those who fail to file this declaration and pay the tax, are exposed to a penalty of ¢231,100 (half base salary) for late filing, plus interest for the days of delay in paying the tax and a penalty for late payment, which corresponds to 1% per month or fraction of a month, calculated on the amount not paid within the term.

Call us for a consultation to learn more and see how we can help you.

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