What is an inactive companies?

Any company registered in the National Property Registry that does not carry out any lucrative activity registered with the Ministry of Finance, since they do not earn income from lucrative operations, but may have assets in their name.

Now, in Costa Rica, inactive companies must declare to the Tax Administration the value of their assets. That means, the value of their assets or property they have, minus the value of their liabilities or debts.

In Costa Rica, it is very common for people to put some of their assets under the name of a company. If you are one of those people, it is important to be aware of this information.

When must that declaration be filed?

Again, the General Directorate of Taxation extended the term for the presentation of the patrimonial declaration of inactive companies. Initially, the term to present this declaration ended on March 15th, 2022, and was extended until June 15th of the same year. Following this and because of the hacks suffered on the Ministry of Finance´s website, an extension was made until August 16th, which was again extended until November 15th of this year, this being the last date to be able to present the statement. However, last Wednesday, November 9th, the General Directorate of Taxation, through resolution DGT-R-033-2022, established a final extension to present the declaration dated on April 30th, 2023.

The presentation of this declaration is an annual obligation that inactive companies in our country will have to comply with.
Important notes

• It is important for companies to have their fiscal domicile and the details of their representative up to date.
• In the case of legal representatives not domiciled in the country, the Special Tax Identification Number (NITE) must be obtained. If they are domiciled in the country, an identity card or DIMEX is required.
• Declaration D-101 must be filled out or the specific form created for this type of taxpayer, if applicable.
• The assets that a dormant company has in its name must be declared.

ERP Lawyers has an interdisciplinary team of lawyers and accountants specialized in this matter willing to provide you with the best advice. Do not hesitate to contact us if you require our services for the preparation and presentation of the patrimonial declaration of your inactive companies.