Opening or keeping bank account now a paper chase

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

An expat went to his bank on Friday to open a new bank account. He said to the customer service representative, “I would like to close a bank account for one company I have had for 10 years and open a new one for a new company.” The agent look at him perplexed and said, “Why in the world do you want to do that.”

The man explained one business is stopping operations and was legally closed with the tax department, and that he started a new company to keep the operations separate. As they should be under the tax law. The bank employee said, “Do you have any idea all the paperwork you need. It would be easier to use the old account and not close it.”

The diligent expat had previously requested a form with all the requirements and showed the representative his folder.  He also explained he was a long time loyal customer and there had never been a problem with his account.  The agent said, “It does not matter how long you have been a customer with our bank, everything is different now. I will go talk to my boss to see if I can open the account.” After a long wait, the person finally came back and said, “We will open your new account, but you still need additional information.”

The crux of the story is the bank employee was correct. The red tape and requirements to open a new bank account for a company are a bad dream. Here they are on this abridged short list.

Registro in court for blocking company resignations

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

One Costa Rican woman is fighting a win-lose scenario against the state.  She had a rude awakening in 2012 when she tried to resign her position as secretary of a local company as allowed by Transitorio IV of Ley 9024.  The Registro Nacional said she could not quit because the company owed money to the Caja Costarricense de Seguro Social, known to most as the Caja.  

She immediately filed suit in the Tribunal Contencioso Administrativo, the administrative law court, for relief, arguing the transitorio gave her the right to leave her office as secretary. There were no exceptions outlined in Law 9024.

Tax agency throws another expensive curve ball

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!

This year the tax department, known officially as Dirección General de Tributación, and loosely as Tributación Directa, had a surprise for many expats and Ticos alike. The government institution changed inactive companies that pay the lower company tax assessment created by Law 9024 to active without any warning. 

Active companies pay twice as much as inactive ones, a matter of some $200.  This has outraged the affected. One expat in La Garita is downright furious. He said in a telephone interview, “My company has been inactive for 10 years. It has never had an activity. What gives the tax authority the right to double my taxes without reason or notification?”

Attorney Allan Garro of Garro Law is mad, too. His expat and Tico clients have called him outraged and wanting answers. He had none to give them, so he sent staffers to the tax department and Registro Nacional to ask questions. They got to the bottom of the problem, and the result is a shock.