TAX OBLIGATIONS: FIRST QUARTER 2023

Continue reading to make sure you are complying!

As a One Stop Shop, we are here to help our Clients in all their needs and we know that one of the struggles is keeping up with tax obligations. We have prepared this summary to provide a recap of the fiscal obligations of the first quarter of 2023, including those that should have already been complied with. If you are late, don’t panic! We are here to guide you, and you can reach out to us to obtain assistance in making you and or your Costa Rican corporation in full compliance.

In Costa Rica, all tax obligations are submitted to the Ministry of Finance through the Virtual Tax Administration (also known as “ATV” from its Spanish acronym). The payments are made in the banks authorized to collect taxes.

Below a summary of the tax obligations (declarations, periods, and payments) applicable to every legal or natural person for the first quarter of 2023:

Ministerio de Hacienda

MONTHLY OBLIGATIONS - In this case, applicable to the December 2022 reports.

Due date: January 6 th

  1. Value Added Tax Declaration for Cross Border Digital Services Providers (D-185)
  • The Declaration must be submitted during the first five business days of the following month.
  • The Informative Declaration of Collection of Value Added Tax (VAT)
    is only required by providers of cross-border digital services – companies that are outside of Costa Rica; however, that are registered to collect VAT.

Due date: January 10 th

  1. Utilities Tax Declaration (D-150)
  2. Value Added Tax and Income Tax (D-155)
  • D-150 and D-155 Declarations must be submitted during the first ten calendar days of the following month.
  • Applicable percentages of each tax must be withheld, and the Declarations must include the monthly summary of the withholdings payment on account of Utilities and Value Added tax, respectively.

Due date: January 16 th

  1. Withholdings of the Source (D-103)
  • The corresponding Declaration must be submitted during the first fifteen calendar days of the following month.
  • Applies to companies that make payments of salaries higher than the exempt, therefore experience withholding tax; they must report the payments and amounts that correspond to remittances abroad, allowances of the Board of Directors and dividends.
  1. Value Added Tax - Traditional System (D-104)
  • Must be submitted during the first fifteen calendar days of the following month.
  • Physical and legal persons that sell goods or provide services, must declare and pay the VAT within given term.
  1. Real Estate Capital Income Tax Declaration (D-125)
  • The Declaration must be submitted during the first fifteen calendar days of the following month, and payment is due on the same date.
  • It is applicable to natural or legal persons who have real estate income from the previous month.
  1. Self- settlement of the Movable Capital Income Tax Declaration (D-149)
  • The Declaration must be submitted during the first fifteen calendar days of the following month, and payment is due on the same date.
  • It applies when the previous month income was obtained from investment property.

The above monthly duties from January, repeat in the following months.

OTHER OBLIGATIONS

Due date: January 16 th

  1. Solidarity Tax for the Strengthening of Housing Programs (D-179)
  • Although this is an annual tax, the statement is filed every three years.
  • Applies to “luxury houses”, which exceed 148 million colones in the construction value (approximately US$265,000).

Due date: January 31st

  1. Legal Entities (Corporate) Tax
  • Due annually: The amount depends on the gross income of the company; even if it is an inactive company there is a minimum that is due.
  • Micro and small companies registered with the Ministry of Economy, Industry and Commerce (MEIC) and small, medium agricultural producers registered with the Ministry of Agriculture and Livestock (MAG) are exempt.

Due date: February 28th

  1. Annual Clients’ Declaration, Suppliers and Specific Expenses (D-151)
  • It must be submitted only by those taxpayers who are not subject to the electronic invoice system.
  1. Annual Summary Declaration of Withholdings Single and Definitive Taxes (D-152)
  • Individuals or legal entities, public or private, subject or not to the payment of income tax, including the State, entities of the National Banking System, autonomous and semi-autonomous institutions, municipalities, and the entities referred to in Article 3 of the Income Tax Law, are required to file this information return.

Due date: March 15th

  1. Income Tax Declaration (D-101)
  • Applies to companies’ domiciled in Costa Rica.
  • In the case of companies with a special fiscal period, applies within two months and fifteen days after closing.

Due date: March 31st

  1. Education and Culture Stamp Tax (TEC)
  • Must be paid no later than March 31st of each year, by any commercial company that is registered, and any subsidiary of a foreign company that is registered in the Commercial Section of the Public Registry of Property.

OTHER OBLIGATIONS – VARIABLE DATES

  1. Municipal Tax Patents Form
  • The declaration must be presented as established in the patent law.
  • Check the payment schedules applicable to the municipality in which the tax payers are registered.
  1. Property and Real Estate Tax
  • Property owners, no matter the value of their land or the building, have also the obligation to pay this tax before the Municipality. The payment can be subdivided in four trimestral payments OR done for the total annual amount.
  • It is recommended to proceed with the payment of the full amount by the end of January.
  1. Capital Gains and Losses Tax Declaration (D-162)
  • Must be submitted during the first fifteen calendar days of the month following the generating event.

CRIBO can help you verify and fulfill all your tax obligations. Reach out to us to make sure you are complying and to receive help with the payments: contact@cribo.cr

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