Based on a reform to the Income Tax Law introduced via The Law for Strengthening of Public Finances # 9635, ALL registered Costa Rican companies independently if they are conducting a business activity or not, are now obligated to file Tax Declarations, by March 15th, 2021.
As many of you know, Costa Rica allows the formation of companies that are not meant to have a business activity besides holding an asset or also companies that do not operate in Costa Rica. Prior to the aforementioned reform, “holding companies” and/or offshore companies were not supposed to file any Tax Declaration as they were considered inactive.
This new obligation will be a tool for the government in its efforts for added transparency and in its fight against fiscal fraud and money laundering.
In order to simplify the obligation, inactive companies will only have to declare information about assets, liabilities and equity, in form D.101. (Income Tax Sworn Statement)
The Tax Declaration has to be made by the legal representative of the company, in the case of S.A.s it is normally the President and/or Secretary and for S.R.L.s it´s normally the Manager. GLC is ready to assist you in this new obligation in order to maintain your company in good standing and to avoid considerable fines and complications.
As a large number of foreigners are owners of properties through a holding company, we have a procedure in place in which with the use of a Proxy our firm can be appointed to make the Tax Declaration for you without your presence in Costa Rica. he
Please do not hesitate in contacting us in order to get a quote or if you require a further explanation.