The Costa Rican Tax Authorities published Resolution No. DGT-R-075-2019, related to the obligation of “inactive companies & entities”
Article 2 of this Resolution establishes as following:
“Legal entities that have not carried out lucrative or substantive activities in the fiscal year must submit the Income Tax Form D-101, which establishes in article 20 of the Income Tax Law, No. 7092 and its reforms. For this purpose, they must include the information on assets, liabilities and equity in accordance with the International Financial Reporting Standards (IFRS) and resolution DGT-R-029-2018 (…)”
According to the aforementioned, it is necessary to maintain the proper support documentation of the following:
- Assets: fixed assets, investments, bank accounts, among others.
- Liabilities: bank debts, loans, among others.
- Equity: shareholder’s equity, additional paid in capital, revaluations, among others.
This specific compliance obligation indicated above, should be satisfied annually, within two months and fifteen calendar days following the end of the fiscal year (due date for fiscal year of 2020 would be March 15th of 2021). All data must be duly confirmed even if there was no variation within the year.
Even though this task is to be done by an accountant, at Arturo Blanco – Jurex Law we offer comprehensive assistance & advisory to carry out all these new compliance formalities.
It is important to mention that the information (annual accounting and the tax filing) will be prepared based on the information given by the Company.
Do not hesitate to contact us directly in case of having any potential doubts.
Kind regards,
Arturo Blanco esq.