One of the most efficient tools that Costa Rican Tax Authorities have are the so called Informative Tax Returns, these tax returns numbered from D-150 to D-161 are used by the Tax Administration to cross reference information in terms of who has paid how much to whom and under what category.
Who should file these tax forms?
If you run a business of any kind in Costa Rica of any kind and as a corporation or individual, therefore you should be registered as Tax Payer at the Local Tax Administration’s Office you must file these forms, mainly the forms D151 (clients, vendors and specific expenses) and D152 (Income Tax Withholdings).
What are those tax forms for?
The form D151 is the primary tool used by the Costa Rican Tax Administration to cross reference information, since it contains information such as:
- Costa Rican clients who purchases from you in the way of services or items more than $100 within the fiscal year.
- Costa Rican Vendor from whom you bought in the way of services or items more than $100 within the fiscal year.
- Costa Rican companies or individuals to whom you paid more $100 in the way of rents, fees, commissions and interests, within the fiscal year.
Keep in mind that all the above mentioned payees will also report you as payer.
The form D152 is the one that guarantees to the Tax Administration to double check that all the income tax withholdings were practiced properly if you paid:
- Salaries (over $1,442), pensions and board of directors fees
- Interest paid over Investment Funds
- Payments to non Costa Rican Companies who rendered services within Costa Rica Borders or got pay in the way of royalties, franchise fees, etc.
The most common reasons why you would have to file the form D152 is because you have employees who make more than $1,442 per month and you withhold the mandatory Salary Income tax out of their paycheck.
When should these forms be filed?
The form D151 must be filed before December 2nd, 2013, each year, right before the Income Tax Returns which dues on December 16th, and the form D152 must be filed before January 15th, 2014.
If you fail filing these forms on time the fine could reach 2% of the reported gross incomes, remember that others may be sharing the same information with the Tax Administration, so there are several chances that Tax Authorities catch you if you fail filing, only if you run a business.
Additional Costa Rica Tax forms:
You will find below chart which shows the other Informative Tax Returns and their purpose:
- Form 150 – Transportation, movies, re insurance, news, movies, etc and Goverment Contractors
- Form 153 – Sales tax Witholdings made by credit and debit cards Proccesors
- Form 157 – Exit Tax Collectors
- Form 158 – Agropecuary Auction Houses Purchases and Sales
- Form 160 – Authorized Invoices printed at licensed Printing Shops
- Form 161 – Cashing Machines Sold, Rented, Repaired by licensed Dealers