Costa Rica has been updated the Law N° 9428 which previously declared unconstitutional due to the approval procedure inconsistencies. The Law provides the corporation flat tax which is establishes an applicable progressive rate.
Thus, the tax considers whether the entity is registered as a taxpayer or not. Also, (if registered) it considers the gross amount accrued by the entity during the tax period. Herein, the new amounts of the Corporation Flat Tax are:
| Corporation Flat-tax | |||||
| Corporation Branch or Individual Corporation |
Registered as taxpayer | Gross Income | Rate | Amount in Colones | Amount in USD |
| NO | Not Applicable | 15% BW | 63930 | 112.5528 | |
| YES | Less than 120 BW | 25% BW | 106550 | 187.588 | |
| YES | 120-280 SB | 30% BW | 127860 | 225.1056 | |
| YES | More than 280 BW | 50% BW | 213100 | 375.1761 | |
| BW=Basic wage 2017: 426.200,00 | |||||
The law extracts from its predecessor, the dissolution penalty when the entity is three consecutive amounts due. Additionally, for tax return purposes the Corporation Flat Tax will be considered as non-deductible and not subject to compensation. The CFT corresponding to this year must be paid as of July 1st, of this year. The Costa Rican National Registry will be entitled to collect the CFT amounts due. In this sense, the above said law has established a tax amnesty up to October 1st, so the CFT due can be paid without any penalty or fine.
