Preventing and Solving Problems for Expats in Costa Rica
Exclusive to A.M. Costa Rica
September is almost upon everyone. It is the month the 2020 RTBF is due, again. The same bank-breaking fines are still a reality, so it would be a good idea to take heed and get ready to file the report.
For those who have a selective memory and try to bury tax mandates in the back of their mind, this is the same report that people with a legal entity in Costa Rica had to file back in March.
Here is some background to stimulate the memory neurons. [Read more…]
Exclusive to A.M. Costa Rica
Expats and Costa Ricans alike are dumping their companies that hold property and other assets because they feel they will save money in the long run by putting the asset in an individual’s name. Granted keeping a company costs money, but it is cheap compared to what probate costs when someone dies. Everyone should know the facts about death and transferring assets in Costa Rica.
Many attorneys promote the business of closing companies because to do so is a handsome fee for them. What they do not explain to their clients is probate in Costa Rica is costly, much more expensive than keeping a company holding assets up to date.
Here are the facts: [Read more…]
Exclusive to A.M. Costa Rica
Most people with a company and many attorneys who are notaries are unaware most board meetings in Costa Rica can be held online without the need of a physical assembly. This is important news for those needing to make changes to their company, to authorize a special power of attorney or to change board members.
Some companies recently were fined a lot of money for not filing their Law 9416 report (also known as the transparency and final beneficiaries register or RTBF for short). They could have avoided the fines if they had had an online meeting giving someone a special authorization to file the documents with the Central Bank. [Read more…]
Exclusive to A.M. Costa Rica
Almost everyone is going stir-crazy at home these days due to the virus. This means more people are on the internet and many find it slow as snails. If the internet is not up to par, there are some simple things everyone can do to improve their connection, and for braver individuals’ internet bonding can make it rock! [Read more…]
Exclusive to A.M. Costa Rica
There are an estimated 80,000 corporate entities that did not file their owners’ report to the Central Bank.
The full document of those entities that missed the deadline for the 2019 owners report is located on the tax department’s website. It can be downloaded in PDF format for viewing offline or for printing. The report is mandated by Law 9416 and was due by March 31
There may be one last chance for those that are delinquent. Details follow below. [Read more…]
Exclusive to A.M. Costa Rica
There have been more new tax rules in the last four years than there have been in the past 10. Many expats are lost in the maze, and their heads are about to burst with all the information. Here is a concise list of the deadlines past and present to help everyone get organized.
Jan 31. Law 9428 taxes were due. Most people refer to these assessments as the yearly company taxes. In Spanish, they are called, “Impuesto a las Personas Jurídicas.” It is not an income tax, but just a charge by the government for using a company structure to hold assets instead of in a personal name. Active companies pay 25% of Costa Rica’s minimum salary or 112,500 colons ($200), and inactive entities pay 15% or 67,530 colons ($120). Currently, the base salary in the country is 450,200 colons or around $800. For those that have not paid, interest is now accruing, and they should get the amount due paid as soon as possible to avoid the overcharges.
March 16. Income tax returns are due for any company doing business that was activated after July 1, 2019. It is important to note this is for active companies only and does not apply to inactive ones. [Read more…]
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. [Read more…]