Legal entity tax (Law 9428)

Important Considerations

• Who must pay this tax?
The Legal Entity Tax must be paid by all commercial entities, the branches of a foreign company or its representative and limited liability companies registered in the Legal Entity Registry at the National Registry. This tax must also be paid by foreign companies, incorporated companies, limited liability companies, limited partnerships, collective companies and individual limited liability companies.

• Where can I pay the tax?
DGT has informed that this tax may be paid in several public and private banks, whether online or in any of its branches. Some of the banks where this tax can be paid are: Banco de Costa Rica (BCR), BCT, Davivienda, Banco Nacional, Grupo Mutual.

Taxpayers can access the bank’s website and look for the option to pay taxes. Then type the name and legal entity number. The system will automatically estimate the amount owed.

• So, legal entities must pay again the tax for 2018 in January?
Correct. In January, DGT will start collecting this tax again with new fees. Inactive legal entities will pay ¢63.930. Active entities with less than ¢51,4 million revenue will pay ¢106.550.

Entities with revenue between ¢51,4 y ¢119 million will pay ¢127.860; and those with more than ¢119 million revenue will pay ¢213.100.

• What if I make a late payment of this tax?
Companies that do not pay this tax shall see penalties and administrative problems. For one thing, they won’t be able to bid in public tendering to get State procurement.

The National Registry will not issue Legal Entity Certifications while in default. Also, they won’t be able to register documents on behalf of taxpayers. Finally, they will have to pay a 1% penalty for each month delay, plus interest as established by law.

• What is the amnesty for entities that did not pay some of the prior terms?
A Legal Entity Tax Law’s transitory opened a three-month period between September and October of this year so that all those entities that owed any term between 2012 and 2015 can catch up, free of penalties and interest.

• What if a legal entity fails to pay three or more terms?
The Ministry of Treasury’s DGT will send a list of all entities that owe three or more terms of taxes to the National Registry, in order to initiate an unregistering process.

Additionally, inactive legal entities must also submit the D-140 form and pay taxes.

If you need more information regarding registering and payment of this tax, please contact us. It will be our pleasure to guide you.