Like in most of the countries, any Corporation making profits in Costa Rica must pay the respective Income Tax, which is called in Costa Rica as “Impuesto sobre la Renta”.

However, in addition to such tax, every Costa Rican Corporation or foreign corporation registered in Costa Rica National Registry must pay a special tax which is called “Timbre de Educación y Cultura” (Education and Culture Stamp Tax). This tax must be paid every year, during February or March. Each Corporation must pay it, either if it is making profits or not.

This tax was created by Law No. 5923. It is calculated based on the capital of the Corporation and according to the following rate:

All numbers in Costa Rica Currency ( “Colones” )
Corporate Capital Tax to pay per year
From                0 to    250,000.00 750.00 Colones
More than    250,000 but less than  1,000,000.00 3,000.00 Colones
More than 1,000,000 but less than 2,000,000.00 6,000.00 Colones
More than 2,000,000.00 9,000.00 Colones

It must be paid in February or March of every year and based on the Income Tax Declaration presented in the previous year (Art. 7.). Of course for active corporations, which are the ones registered in the Tax Administration as running some kind of lucrative activity or business and which are the ones presenting such declarations. For inactive corporations, Tax Administration calculates the tax based on the value of the Assets (basically properties Fiscal Value).

© Copyright E&T ESCROW & TRUST SOLUTIONS S. R. L. Costa Rica.

www.escrowtrustsolutions.com ) (Re-printed with its permission)

Please Note: This material is for personal use only and is protected by Copyright Law. It is provided as general information only and does not constitute and is not a substitute for legal or other professional advice. Reliance on this material is solely at your own risk. Always consult your own legal or other professional advisors and discuss the facts and circumstances that apply to your specific case.

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