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Inactive Corporations need to complete a D-140

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Corporations were once the standard way for foreigners to hold assets, such as vehicles and property, or in order to open a bank account. For many people who opted to form a corporation to hold properties or assets, rather than as an active business, there are new laws that apply and mandatory documentation you must complete to comply with the regulations.

One of those regulations involves the completion of the D-140 form for anyone who holds an inactive corporation. Active corporations are required to file income tax annually so they do not need to complete this form. For people who have held assets in a corporation for many years, this may come as a surprise, as this was not required in the past. Times change, even in Costa Rica.

If you are unsure as to the active or inactive status of your corporation you can check online on the Consulta Situación Tributaria website. Scroll for Cédula Persona Jurídica and click. Then fill out the corporate ID number or the company’s name. Fill out your corporate ID number and click search. In the result, look for Actividades Económicas, there are two options: No hay actividades económicas que mostrar” for an inactive corporation, or Estado – A for an active corporation.

If reading and writing in Spanish is not one of your strengths, it is recommended you discuss the requirements of the new law with your lawyer or an accountant. If you can read and write in Spanish, then you can download the form here, fill it out and take it to the nearest tax office. In Liberia the tax office is located in the Mall Centro Plaza Liberia. Keep in mind, you need to be the person authorized to file on behalf of the corporation or hold Power of Attorney for the corporation.

When completing the form in Part3 - Economic activity, you need to fill out what the activity of your corporation is.

  • In case the corporation is a holding company for a car, you can fill out “Únicamente para uso de bien mueble”.
  • If the corporation is a holding corporation of raw land, you can fill out “Únicamente para uso de bien inmueble como lote sin construir”.
  • If you use the corporation only as a holding company of the property where you live, you can fill out “Únicamente para uso de un bien inmueble como casa de habitación”

Note: If your corporation is for a income property or rental unit, it should be registered as an active corporation, and then you are required to file tax returns annually. Again it is best to consult with an attorney or an accountant.

The form is required to be submitted on various dates depending on the last digit of the corporation ID (Cedula).

  • Corporate ID ending in 1 and 2: During the month of February 2018.
  • Corporate ID ending in 3: During the month of March 2018.
  • Corporate ID ending in 4: During the month of April 2018.
  • Corporate ID ending in 5: During the month of May 2018.
  • Corporate ID ending in 6: During the month of June 2018.
  • Corporate ID ending in 7: During the month of July 2018.
  • Corporate ID ending in 8: During the month of August 2018.
  • Corporate ID ending in 9: During the month of September 2018.
  • Corporate ID ending in 0: During the month of October 2018.

We advise you have a 2nd copy of the form completed when you go to the tax office.