It is just the first day of 2018 but you know what they say “death and taxes”. The Costa Rica Treasury Department (Ministerio de Hacienda) reminds all owners of Costa Rican corporations that the tax payment for these, are due this month.

The payment can be done starting today and the last day is January 31st. The amount each corporation pays will depend on how it is classified in the National Registry, active or inactive; the government calculated the amount based on a percentage of the base salary of a government employee; an inactive corporation and corporations that are created in 2018 will pay 15% of this base salary (64,650 colones approximately $115.45 at 560/$1); active companies will pay a percentage based on their gross income; for example, companies that gross less than 51.7 million colones (approximately $92,357.00 at 560/$1) will pay 25% of the base salary (107,750 colones or $192.41 approx.); if the gross income is more than $92,357.00 and less than $212,000.00 (approx. depending on exchange rate applied) the amount to pay is of 30%, meaning 129,300.00 colones (approximately $230.90); corporations reporting an income of over $212,000.00 will be charged a 50% of the base salary which is equivalent to 215,500.00 colones , close to $384.82.

The tax applies to commercial corporations (S.A.) , limited responsibility corporations (LTDA), individual companies of limited responsibility (SRL), collective corporations, corporations that represents a foreign entity, etc. The Government expects to collect over US$74 million a year in corporate taxes and 90% of these funds will go to the Police Force. Fines apply if the payment is not done by due date.

The only companies exempted of paying this tax are small companies registered as such in the Ministery of Economy, Industry and Commerce (MEIC) and small and medium size agriculture producers registered in the Ministry of Agriculture and Livestock (MAG).

Tax can be paid at the different public and private banks or directly at the National Registry.