Business National Nosara Tax Law

Shareholder Tax Law | A business tip by BIZLO

In an effort to join OECD, Costa Rica has agreed to implement a series of regulatory measures to improve transparency and fight tax fraud.

Information provided by Lic. Carlos Araya | BIZLO Real Estate & Legal Services

“An extension has been granted to complete the infamous registry of shareholders. That’s the simplified version of it. But there is always more to it. Law No. 9416 requires companies to record their ultimate beneficiaries in a database in the custody of the Central Bank. The info in this data base is not available to the general public. It can only be requested by judges and authorities.”

“The first clarification is that a shareholder is anyone who holds shares of an entity, so a shareholder may be an entity as well. The regulations passed require registration of the person whom ultimately benefits from a company´s prosperity, as this is the person whom ultimately should be responsible for that company´s taxes, instead of the anonymous dead end that companies used to be in CR. The initial plan was for companies to register their beneficiaries based on a schedule tied to the last digit of the corporate number starting in September 2019. It was changed so all companies had to file by January 31st of 2020, date on which a massive guillotine would come down with fines for those who didn’t make it.”

“You can now take your time to complete get your digital signature (if you qualify) and get it done. This is a moratorium more than an extension. If you complete your filing by the end of March, you won’t get a fine.If you complete it by the end of April, you will only get 50% of the fine. The fines are hefty, so it’s better to get it done. Tax authority, you win again.”

Leave a Reply

%d bloggers like this: