November 09th, 2022

The tax administration of Costa Rica has informed today that the owners of dormant corporations that have not complied with the filing of the D-101 form for dormant corporations will now have a time extention to comply until April 30th, 2023.

The extension of time to comply with this requirement has been given due the amount of requests that the tax administration receives for filing and also the limited amount of resources that the entitiy has to process all those requests.

The D-101 Form for inactive corporations, a.k.a, the “asset declaration form” it’s a new requirement for corporations with no business activity, those corporations are now obligated to declare a banlance sheet with the update on their Assets-Liabilities and Capital in an annual basis.

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 the company books under “capital” is just the small amount of the value of shares for each shareholders, and not all the capital contributions used for buying assets as properties and vehicles).

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 and prepare the corporation records for future requirements.

For getting this done the attorneys should write an act with the updated numbers (numbers come from the new tax form or the opening books of the corporation) and added to the corporate books, 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).

Original Communnication from the Tax Administration

In ConsultantsCR, we’re an integrated-customer focused legal, business and investment advisory agency with over 15 years of experience, we can provide assistance with this and many more requirements and compliance, feel free to contact us anytime at info@consultantscr.com or our phone numbers in the contact section.