Exclusive to A.M. Costa Rica
Costa Rica’s tax department finally made up its mind about what do with inactive companies. Starting this year, all inactive entities will be required to file a tax return, Form D-135, due March 15, 2021, and yearly thereafter. It is a new tax return where assets, liabilities and equity must be reported using ATV, the Administración Tributaria Virtual, the country’s online digital tax system.
An inactive company is one that does not do business and only exists to hold assets or for other reasons other than producing revenue. The tax authority made up a new tax identifier for them, 960113. In the past, these types of companies were not required to file tax returns as other businesses do.
The government has been off and on regarding tax returns for these types of structures. Last May this writer said they were on, then reported in June they were off again. Now it appears they are on for good with their public notification regarding the new requirements in the official newspaper, La Gaceta, Dec. 20. [Continue reading]