Last week, the tax administration informed that they have extended the deadline to comply with the filing of the D-101 form for inactive corporations, now the corporation owners that haven’t complied with this mandatory requirement have until November 15th, 2022 to file this mandatory form.
The D-101 Form for inactive corporations, also known as the “asset declaration form” it’s a new requirement for corporations with no business activity, those corporations are now obligated to declare a statement with the updated balances of their Assets-Liabilities and Capital annually to the tax administration, this requirement was implemented in 2020 by the tax administration of Costa Rica in compliance with the requirements from OECD in order to improve the grade and international reputation in tax regulation matters. However, due COVID-19 and the limited amount of resources to attend all the inquiries and request from the tax payers, the tax administration ended up suspending the new requirement for 2020 making it mandatory to be declared for both 2020 and 2021 starting in 2022, the next tax period to be declared will be 2022 with the deadline in march 15th, 2023, and the same for the following years.
This form is an informative requirement and doesn’t generate any taxes for the corporation owners.
A very important step to follow regarding this requirement is also to update the writting in the legal books of your corporation, updating the balances of the capital account into the company books (normally what is showed in that account is just the shares).
The update should add the value of all the assets as extraordinary capital contributions, perhaps not complying with this is not fined as with the D-101 tax form, this legalize the assets of the corporations as part of the total capital. For this an act has to be written with the updated numbers (numbers come from the new tax form) and it’s added to the corporate books by your attorney, therefore is very important that if your accountant has done this work for you, besides the tax administration return and the receipt they should also submit you with copy of the corporation opening books and also the update to each corresponding fiscal period (2020 and 2021 for now).
In ConsultantsCR, we’re an integrated-customer focused legal, business & accounting firm, we can provide assistance with this and many more requirements and compliance, feel free to contact us anytime at email@example.com or our phone numbers in the contact section.
Original Communnication from the Tax Administration