New Corporate Tax Payment On Agenda For Most Businesses

Though the annual corporate tax for 'active companies' went into effect last Monday, today, the first real business day of the month will be key for the start of payment.

The tax is equal to half the average monthly base salary of a public sector employee. For 'inactive companies', those used to house personal assets but which do not undertake commercial activities, the tax is half this amount.

The annual tax is ¢180.300 colones for active and ¢90.150 for inactive companies. However, for 2012 the paymet is prorated for the payment starting in April rather than in January.

The law calls for the payment to be made by the first 30 days of each year, this the first year being April 30.

The law provides for exemptions for not-for-profit corporations, and for small- and micro-businesses, providing they are registered as such with the Ministry of Economy, Industry and Commerce.

With the tax payable the government has introduced transitional measures to allow tax breaks for those seeking to restructure their tax affairs. Taxpayers wishing to dissolve corporate structures by July 2012 may receive exemption from the payment of the tax, and transfers from one corporate to another, or to an individual, will be exempt from transfer taxes otherwise due on this transaction, until October 2012, providing the company has been inactive for at least 24 months prior to the enactment of the law.

The tax has been introduced to fund enforcement projects to tackle organized crime, with proceeds going to the nation's security ministry, “Ministerio de Seguridad Publica”.

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