Q COSTARICA — The Administrative Court has put a stop to the Caja Costarricense de Seguro Social (CCSS) — Costa Rican Social Security Fund, charging retroactive payments to self-employed workers (Trabajadores independientes in Spanish).
The ruling, issued in case file 19-001284-1027-CA, says the CCSS cannot calculate retroactive charges based solely on the income tax declaration of self-employed workers.
The ruling does not eliminate mandatory contributions for self-employed workers, nor does it question the existence of parafiscal contributions. However, it does highlight that the CCSS “merely assumed, automatically, thoughtlessly, and illegitimately,” that the income declared on income tax returns was the same income that should be used to calculate the contribution for years.
“The ruling makes it clear that the conflict wasn’t about the possibility of auditing, but about the way the institution structured the retroactive collection. Because reviewing financial information is one thing, but automatically transforming an income tax return into a social security bill is quite another,” said tax attorney Gabriel Zamora Baudrit
Previously, the CCSS had been applying retroactive charges to settle supposed differences in contributions, using the tax declaration as the main reference.
The court found that such retroactive charges violate legal principles and the rights of workers because the income tax declaration is not an appropriate or sufficient basis for these retroactive assessments.
This ruling annuls automatic retroactive collections made by the CCSS against self-employed workers, protecting them from unexpected retroactive charges that could have significant financial impacts. It also sets a legal precedent limiting how the CCSS can enforce payments and collect contributions from this group in the future.