American Expatriate Costa Rica

The tax on legal entities will be collected

The tax on legal entities will start being collected on August 1st, after Law 9428 was published in La Gaceta official newspaper, on March 22nd.

According to the Association of Public Accountants, this date will only apply if the Government publishes the respective regulation during April, otherwise, it will be changed.

Ronald Artavia, head of the group, explained that the recovery will be reactivated for all types of commercial companies, such as corporations, limited liability companies, limited partnerships, partnerships, among others.

If people fail to make payments on the dates established by the Tax Authorities, a fine and an interest rate will be applied, which will be calculated per day, and which annually represent 11.73 %% of the total tax.

The delinquency of this tax payment has implications for the taxpayers: the person will not be able to participate in contracts with the State or any public institution, the National Registry will not issue certificates of legal status, the person will not be able to register any document in favor of the taxpayers and if they don’t pay in three consecutive periods, they would be exposed to the dissolution of the company.

Likewise, non-payment generates the penalties established in the Code of Tax Rules and Procedures as well as the interests established in this law (approximately 0.98% per month).

According to article 11, 90% of the collection of the tax will be assigned to the Ministry of Public Security to invest it in the construction of police stations, purchase and maintenance of police equipment, in the attention of citizen security and fight against crime; 5% will go to the Ministry of Justice and the other 5% to the Judicial Investigation Agency.

crhoy.com