The tax on Legal Persons or Corporations came into force in April 2012 and applies to all commercial companies that are already registered in the National Registry (such as Limited Liability Companies, among others), as well as for new companies that are in the process of registering or are going to register

A distinction must be made regarding the amount to be paid, according to the tax status that the company maintains before the General Directorate of Direct Taxation:

• Corporations which are contributors will pay 50% of the base salary, on an annual basis.
• Corporations which are not contributors or are inactive will have to pay 25% of the base salary, on an annual basis.

All corporations must pay this tax on or before January 31st of each year during the existence of the company, and the tax can only be paid through the Bank of Costa Rica. This tax will not be deductible as an expense from the Income Tax.

Liability, fines and penalties

It is important to emphasize that the corporation Legal Representatives will be held responsible in case of default on the payment of said tax. Also, in case that the tax is not duly paid the Public Registry will not issue any Certificate of Incumbency nor will record any kind of document for the default contributor. In the same way, defaulting taxpayers will not be able to contract with the Public Administration.

Failure to pay this tax for three consecutive terms shall be grounds for the automatic liquidation of the corporation. The Public Registry will send the notice of dissolution to the official newspaper, La Gaceta and shall cancel the registration and will place a lien on its goods. The debts arising from this tax will form a legal preferred mortgage or pledge, in the case of real or personal property owned by the corporation.

The non-payment of the Tax on Legal Corporations established by law for three consecutive periods will be cause for dissolution of the company, therefore, the National Registry will proceed to cancel the registration and recording of assets; constituting a mortgage or preferential legal pledge on the assets of commercial companies or their representatives.

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