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What is the Costa Rica Law on Taxes on Legal Entities?

Costa Rica News – When it comes to taxes and tax law changes it is a topic that most businesses owners want to stay on top of.

The Law on Taxes on Legal Entities (legislative file 19.818) will come into force by the middle of the year, as long as it doesn’t have any constitutional problem.

People are wondering about this tax.

All commercial companies must pay the tax. This includes both anonymous and limited liability companies.

Additionally, branches of foreign companies and limited partnerships must pay. It must be paid to the National Registry of Property and only through the Bank of Costa Rica (BCR).

90% of the money collected will be assigned to the Ministry of Public Security to invest in infrastructure of police delegations as well as to purchase and maintain police equipment.

The remaining 10% will be allocated to the Ministry of Justice and the Judicial Investigation Agency, 5% to each.

The Ministry of Justice is to use the money for the General Directorate of Social Adaptation, the entity in charge of the country’s prisons.

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