In Costa Rica, the Tax Department (Dirección General de Tributación) has established a formal duty for all inactive legal entities to file an informational tax form known as D-195. This requirement, mandated through Resolution MH-DGT-RES-0007-2023, serves as a means to gather essential financial information from inactive companies.
The Filing Deadline
The deadline for submitting the D-195 form is April 30th of each calendar year. This declaration must summarize the assets and obligations of the inactive legal entity for the preceding fiscal year, covering the period from January 1st to December 31st. Failure to comply with this obligation carries sanctions outlined under the Costa Rican Code of Tax Rules and Procedures.
How to File the Form and be Tax Compliant
Legal representatives of inactive companies need to utilize the specific D-195 form provided by the Tax Department and adhere to their filing guidelines.
In the section below I am walking you through the official manual from the tax department for completing the D-195 form. Also included is a link to the official manual provided by the tax department.
You should also be aware that if your company was dissolved for any reason and you still have assets in the name of the company the liquidator of that company will be obligated to file the D-195 form as well.
Understanding and fulfilling the requirements of filing the D-195 informational tax form is essential for all inactive companies operating in Costa Rica to ensure compliance with tax regulations.
Guide for Filling Out the Informational Declaration for Inactive Legal Entities Form D-195 Compliance
1. Introduction
The General Directorate of Taxation has made the D-195 form “Informational Declaration for Inactive Legal Entities” available on the Virtual Tax Administration Portal (ATV), according to resolution MH-DGT-RES-0007-2023, with the aim that all legally constituted inactive legal entities registered in the Unique Tax Registry (RUT) can comply.
2. Content of the Form
2.1 General Rules
Inactive legal entities, registered ex officio by the Tax Administration, must update their information in the Unique Tax Registry through the D-140 form “Modification of Data of the Unique Tax Registry (RUT)”, available on ATV, to enable the D-195 form.
The D-195 declaration does not include data reported by taxpayers who, before this declaration came into effect, had submitted the D-101 (in the periods affected by the D-195) prior to the form’s effectiveness.
Entities required to submit this form are inactive legal entities registered in the RUT of the General Directorate of Taxation (DGT) under the activity codes: 960105 “PREOPERATIVE OR ORGANIZATIONAL ACTIVITIES” and 960113 “LEGALLY CONSTITUTED LEGAL PERSONS”.
Periods: This declaration is annual, covering January to December of each year, closing on December 31st. The information for each period must be consistent with the reality of the inactive legal entity for its respective period.
Chronological Order: Pending declarations must be presented in chronological order, from the oldest to the most recent period. By maintaining this order, information from the first submitted declaration will preload into the next, and so on.
2.2 Steps to Follow to Access Form D-195
Log into the ATV portal through the following link: https://atv.hacienda.go.cr/ATV/login.aspx.
Click on the “Informativas” option in the main menu and select “Presentar Declaraciones Informativas”.
Select the corresponding form and period. Upon selecting the fiscal period, the form will display.
2.3 The Top Heading of the Form
Information such as the period, identification number, name, and number of declaration to be corrected (if applicable) will be auto-filled with the data registered in the RUT.
2.4 The main body of the form
Sections A through F detail the specific information and selections that must be made regarding the inactive legal entity’s lack of lucrative activities, possession of assets (both registered and unregistered), foreign assets, debts, and identification of individuals or entities covering expenses and obligations.
Section A indicate why the company does not have any economic activity referred to as “lucrative activities”
Section B. Indicate if the inactive legal entity owns: trademarks, patents, movable assets, and/or registered real estate: Single selection in the section and subsections. You must answer “Yes” or “No” to the question: Do you own registered trademarks, patents, movable assets, and/or real estate? If you indicate “Yes”, the options of the section will be displayed, in which you must indicate “Yes” or “No” for each of them. Detail of the assets is not required.
Section C.
Indicate if the inactive legal entity owns unregistered real estate: Single selection in the section and subsections. You must answer “Yes” or “No” to the question: Do you own unregistered real estate? (rights and concessions on real estate that are not registered or have not been registered in the National Registry). If you indicate “Yes”, the options of the section will be displayed, in which you must indicate “Yes” or “No” for each of them. Detail of the assets is not required.
Section D. Indicate if the inactive legal entity owns non-registerable assets. Single selection in the section and subsections. You must choose between “Yes” or “No.” If affirmative, the corresponding subsections will unfold. If the response is affirmative in the subsections, the respective data must be provided.
Answer yes or no for each subsection in D
D.1. Do you have cash balances – banks and/or documents – accounts receivable? You must select an option between “Yes” or “No.” If affirmative, the following data for “Cash and banks” and/or “Documents and accounts receivable” must be completed:
The number of bank accounts and/or transactions in the case of documents and accounts receivable must be noted.
Amount or balance in colones.
D.2. Do you own assets or property rights abroad? You must select an option between “Yes” or “No.” This section includes an auxiliary and main table, allowing for multiple entries. If affirmative, you must select the type of asset or right, also indicating the date of acquisition and the acquisition value or current balance of the same.
Selection of the asset or property right.
Entry of the acquisition value or current balance in colones. Once the complete information for this subsection has been entered, the “Add Line” and “Accept” buttons must be pressed.
D.3. Do you have memberships in clubs or similar? You must select an option between “Yes” or “No.” This section includes an auxiliary and main table, allowing for multiple entries. Once the information for this subsection has been entered, the “Add Line” and “Accept” buttons must be pressed, completing the required information as indicated in subsection D.2.
D.4. Do you own intangible assets? You must select an option between “Yes” or “No.” If affirmative, you must complete the “Acquisition or development value” in colones, of the intangible asset you own.
D.5. Do you own assets of another type? You must select an option between “Yes” or “No.” If affirmative, you must complete the “Acquisition value or current value” in colones, of the assets you own.
Section "E. Information on Short-term and/or Long-term Debts"
In the following section and subsections you must choose between “Yes” or “No.” If affirmative, the corresponding subsections will be displayed. If the response is affirmative in the subsections, the respective data must be provided.
E.1. Does the inactive legal entity have debts with entities supervised by SUGEF or another supervisory authority? You must select an option between “Yes” or “No.” This section includes an auxiliary and main table, allowing for multiple entries. Once the information for this subsection has been entered, the “Add Line” and “Accept” buttons must be pressed, completing the required information as indicated in subsection D.2.
E.2. Do you have debts with other types of creditors? You must select an option between “Yes” or “No.” This section includes an auxiliary and main table, allowing for multiple entries. Once the information for this subsection has been entered, the “Add Line” and “Accept” buttons must be pressed, completing the required information as indicated in subsection D.2.
Section "F. Identification of the individuals and/or legal entities that assume the expenses and obligations of the inactive legal entity"
This section must be completed with the information of the individuals and/or legal entities that assume the expenses and obligations of the inactive legal entity. This section includes an auxiliary and main table, allowing for multiple entries. Once the information has been entered, the “Add Line” and “Accept” buttons must be pressed, completing the required information as indicated in subsection D.2.
2.5 The bottom section of the form
Includes the “G. Date and time of receipt of the declaration” section, which is automatically completed upon the declaration’s submission.
2.6 Forms for Subsequent Periods or Amendments
Instructions for submitting forms for subsequent tax periods or making corrections to existing filings, including how to unlock and modify the preloaded information if there are changes or confirm there are no variations if the information remains the same.
Conclusion
In conclusion, the filing requirements for the D-195 informational form in Costa Rica represent a crucial compliance aspect for inactive legal entities. This process seems complex at first glance and I hope the information set forth has made it easier to understand. By outlining specific requirements, such as the declaration of assets, liabilities, and even the identification of individuals or entities covering the inactive entity’s expenses, the tax department is creating a database that aims to maintain a comprehensive database that aids to later aid it in fiscal planning and regulation.
For inactive legal entities, adhering to these requirements is a legal obligation so best ensure compliance to avoid any issues down the line. The D-195 form, with its detailed sections and subsections, may require careful attention to complete accurately, but the guidelines provided are clear and aim to facilitate this process.
The only way to fill out the form is through the Virtual Tax Administration Portal (ATV) which may create some challenges for those who do not have the digital identification card or tech savvy to maneuver the platform. If you are facing challenges in completing the form can seek guidance from an accountant or legal professional.
As Costa Rica continues to evolve its tax policies and practices, entities must stay informed and compliant.
You download the Spanish version of the D-195 Manual directly from the tax department here: D-195 Manual
