Costa Rica: Guidance on employment requirement for taxation of capital income under corporate income tax provisions

Guidance regarding requirement for taxpayers to have at least one employee hired and registered in order to have their capital income taxed

Guidance on employment requirement for taxation of capital income

Article Posted date 28 August 2023

Resolution Number MH-DGT-RES-0018-2023 provides guidance (effective 16 August 2023) regarding the requirement under Resolution DGT-R-058-2019 for taxpayers to have at least one employee hired and registered at the Costa Rican Social Security Fund in order to have their capital income taxed under the corporate income tax provisions.

The guidance adds Articles 7 and 8 which provide:

  • Taxpayers who do not comply with the employment requirement must change the taxation of their capital income from corporate income tax to capital income tax through the submission of Form D-140, by the end of month following the month that they do not comply with the employment requirement.
  • Once registered as a taxpayer of capital income tax, taxpayers must submit within the first 15 calendar days of the following month the tax return of the month in which its registration was made.
  • Taxpayers must file Form D-101 for the months in which their capital income is taxed under the corporate income tax provisions, as well as to self-assess and pay the corresponding tax within the two months and 15 calendar days following the end of the fiscal year.

Read an August 2023 report (Spanish and English) [PDF 374 KB] prepared by the KPMG member firm in Costa Rica

 

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