Tax officials finally OK use of electronic records

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

Here is some great news for green-minded expats. 

The Costa Rican tax department required all tax contributors to keep their account documents for five years and their accounting books up-to-date at all times.   This meant gobs and gobs of paper and sufficient storage places to stash all the stuff.  Not very green thinking.

In a country that pledges to be carbon-neutral by 2021 — different politicians have used a variety of different pledge dates — not allowing companies to digitize their accounting was insane.  

Pesky tax time is here again for corporations

By: Garland M. Baker B. 

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

There is only one tax inactive companies need to pay every year.  It is the education and culture tax.  The tax is due by March 31 which falls on a Wednesday this year.  However, it can be paid anytime during the month of March.

Law 5923 requires the paying of this tax.  Many people slough off paying or do not know about it. The tax is filed and paid using tax form D.110.  

The form is easy to fill out and most banks will accept the payment for the tax authority.  A company’s net capital amount determines the tax to be paid.