As the deadline for filing income taxes in Costa Rica approaches, it’s crucial for all companies, including those inactive, to prepare their financial statements and tax filings for the tax period of 2023. The Costa Rican tax authorities have set March 15, 2024, as the deadline for this obligation. This article will guide you through the essentials of the process, ensuring compliance and avoiding potential penalties.
Overview of the Requirement
In Costa Rica, both active and inactive companies are required to file annual income tax returns. This requirement aims to ensure that all entities are accounted for and compliant with the nation’s tax laws, regardless of their operational status. For the tax period of 2023, the filings must be completed and submitted by March 15, 2024.
Active companies, or those engaged in any form of economic activity, must report their income, expenses, and the corresponding taxes due. In contrast, inactive companies are not exempt from filing requirements; they must still file a return, even though they may not report any taxable income or activities. The rationale is to maintain an updated registry and facilitate administrative control.
The following is the email sent out by the Costa Rica tax department reminding taxpayers to file the return by March 15, 2024.
Preparing Your Filing
For Active Companies
- Financial Statements: Prepare accurate financial statements for 2023, detailing all sources of income, expenses, and net profits.
- Tax Calculation: Based on your net income, calculate the amount of tax owed according to the applicable tax rates.
- Supporting Documents: Gather all necessary supporting documents, including invoices, receipts, and any other relevant financial records.
For Inactive Companies
- Declaration of Inactivity: Ensure that your status as an inactive company is up-to-date and properly recorded with the tax authorities.
- Submit a Return: Even if no economic activity was performed, submit a return indicating this status to comply with legal requirements.
Importance of Compliance
Filing your income tax returns on time and accurately is crucial. Non-compliance can result in penalties, interest charges, and even legal action.
