Saturday, 8 August 2020

More Corporations (Sociedad Anónimas) Close in Costa Rica

In the first nine months of 2019, 4,715 Corporations or Sociedad Anónimas were closed, 13% more than the total number closed during the whole of 2018, which could be because of the entry into force of the Ley del Impuesto a las Personas Jurídicas – tax on corporations.

Since 2017, the year in which the Ley del Impuesto a las Personas Jurídicas came into force, the number of corporations that closed their operations in the country began to increase.

Official data indicate that in 2017 the number of SAs that were dissolved reached 3,603. By 2018 the number was 4,145, which was 15% higher than that reported in the previous year.

- paying the bills -

Tomás Guardia, Deloitte’s Tax partner, told Nacion.com that “… Some companies dissolve because the term expires, then the Registry dissolves them. This happens even though the parties want to save it, but they must present the documents to extend the term (of life of the corporation) “.

For closing a company, the report says that “… Specialists recommend that, before starting the dissolution, a review should be made to determine whether the company is debtor, creditor, has mortgages or has issued guarantees, such as promissory notes.”

For many years, lawyers in Costa Rica recommended holding property – land, house, cars, etc – in a corporation. Changes over the years had led that practice to be cumbersome and costly.

For example, for 2019, the base salary of ¢446,200 colones is used to calculate the 15% tax (¢66,930) for inactive corporations and up to 50% for corporations with an income, the rate based on their activity.

Not paying the tax can lead to the confiscation of assets, but mostly likely dissolution of the corporation.

- paying the bills -

For simpicity sake, if the corporation is dissolved by the registry, the asset is not lost or confiscated, however, the tax liability (including interest and penalties) have to be paid before the asset, say a car or house, can be transferred to a new owner.

For more on the tax on corporations consult a tax lawyer or accountant.

Related Articles

Tomorrow Deadline To Declare And Pay Income Tax Without Penalty

Anyone who has carried lucrative activities or businesses in the country,...

Covid-19 emergency: Payment of four taxes postponed

With the unanimous vote of 47 legislators present, the Legislative Assembly...

MOST READ

The epidemiological form (Health Pass)

(QCOSTARICA) Arriving at the San Jose airport (SJO) in Costa Rica requires the completion of the epidemiological form or Health Pass, among other requirements...

Copa Airlines plan to restart some flights in mid August include Costa Rica

(Q TRAVEL) Copa Airlines, the flag carrier of Panama, said on Thursday it has received government approval to restart flights in mid-August to about...

U.S. Repatriation flights In August

(QCOSTARICA) The U.S. Embassy in San Jose, Costa Rica, has posted the latest information on repatriation flights to and from the United States and...

First flight lands at San Jose Airport 137 days after pandemic restrictions

(QCOSTARICA) At 6:59 pm Monday, Iberia flight 6317 landed at the Juan Santamaría International Airport (SJO), the first commercial passenger flight since the air...

Coronavirus: 18 deaths associated with COVID-19 in 24 hours

(QCOSTARICA) As the closure phase approaches for the orange areas of the country, mainly the Greater Metropolitan Area (GAM), the pressure for more flexible...

Lufthansa confirms 2 weekly flights with Costa Rica

(QCOSTARICA) Lufthansa, the German airline, confirmed that it will operate 2 weekly flights between Frankfurt, Germany (FRA) and San Jose, Costa Rica (SJO). Through a...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.