Requirement Corporation filing Form D-140 is mandatory
Now, a Costa Rican corporation filing is also required, if your corporation is inactive. Just paying the 2017 corporation tax is not enough.
In another blog, I already explained what and how you can make the 2017 corporation tax payments.
The Finance Ministry of Costa Rica has decided that the new corporation tax also requires owners of inactive corporations to file Form D-140.
NOTE: When I wrote this blog, I had published Form D-140 from 2011 that was replaced by a new form in 2016. A reader on the social media said there were two forms, the reason we insisted with the tax office to give us the correct information.Unfortunately, the tax office has not been clear about this and it turns out that the 2016 form replaces the other.For up to date information (made on 2/22/2018) go to the November 2017 Update Corporation tax and form D140.
Only inactive corporations have to fill out Form 140. That’s because active corporations already fill our the income tax form.
Find out if your corporation is active or inactive on the Consulta Situación Tributaria website. Scroll for Cédula Persona Jurídica and click. Then fill out the corporate ID number or the company’s name. Fill out your corporate ID number and click search. In the result, look for Actividades Económicas, there are two options
- No hay actividades económicas que mostrar” for an inactive corporation,
- Estado – A for an active corporation.
Here you can download the correct NEW Form in D-140-modification-2018 Feb 2018
How to fill it out
If you don’t read and write Spanish, here is an explanation on how to fill it out.
The D-140 form must be filed personally or by a representative with the powers of attorney to do so.
If you have someone in Costa Rica with the power of attorney to file the declaration, it is a pretty easy diligence. We strongly urge you to contact your attorney to look for a solution if you don’t.
There are many existing corporations that are inactive but show as active. Active corporations are charged a higher corporation tax or “Impuesto a las Personas Jurídicas”.
If you have a corporation to hold real estate, nothing else, you can file it as an inactive corporation.
When to file
a) Corporate ID ending in 1 and 2: During the month of February 2018. (this is only for those corporations that were registered in the National registry before October 31st, 2017 or those that were dissolved.
b) Corporate ID ending in 3: During the month of March 2018.
c) Corporate ID ending in 4: During the month of April 2018.
d) Corporate ID ending in 5: During the month of May 2018.
e) Corporate ID ending in 6: During the month of June 2018.
f) Corporate ID ending in 7: During the month of July 2018.
g) Corporate ID ending in 8: During the month of August 2018.
h) Corporate ID ending in 9: During the month of September 2018.
i) Corporate ID ending in 0: During the month of October 2018.
Form D-140 can be filed in any of the Finance Ministry’s offices, find a directory Ministerio Hacienda locations.
When you go, bring:
- a copy of the Personería Juridica, which you can pull online from the National Register website.
- the NIS number from your electricity bill
- and whether you present a cedula or a passport, it must be the same document with the same number as recorded in the Personería Jurídica. If you have a cedula, a NIT tax number is not needed
Failure to submit the corporation filing Form D-140 within the established deadlines will lead to a penalty.
This penalty is established in article 78 of the Tax Code and ranges from half base salary up to a maximum of three base salaries, determined by the delay in filing the form.
The base salary 2017 is of 426,200 Colones.
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