March 15, 2022
Costa Rica enacts law simplifying tax obligations for inactive entities and extending due date for simplified income tax return
Inactive entities have an additional three months to file the simplified income tax return, which was due no later than 15 March 2022.
On 10 March 2022, Costa Rica enacted a law simplifying tax obligations for inactive entities and granting a three-month extension for filing the simplified income tax return, which was due 15 March 2022.
The law establishes that inactive entities must only provide the tax authority with a high-level of detail on assets, liabilities and capital, through a summarized and simplified tax return that minimizes compliance costs. If the information does not change in following years, taxpayers must only confirm the information provided in the previous tax return.
The law also allows non-domiciled entities assigned legal ID 3-012 to request the removal of that legal ID, which would eliminate certain compliance obligations they must currently satisfy.
Additionally, the law grants a three-month extension to inactive entities for filing the simplified income tax return, which was due no later than 15 March 2022.
For additional information with respect to this Alert, please contact the following:
Ernst & Young, S.A., San José, Costa Rica
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin America Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin America Business Center, London
Ernst & Young Tax Co., Latin America Business Center, Japan & Asia Pacific