2023 Fiscal Year-End Approaches: Consider These Tips - Expat Community

2023 Fiscal Year-End Approaches: Consider These Tips

Nov 24, 2023 | Costa Rica, News & Articles | 0 comments

The 2023 fiscal year-end is approaching, and the Costa Rican College of Public Accountants advises taxpayers to review their tax records and economic activities before the upcoming deadline on December 31 to avoid penalties. Dunia Zamora, the organization’s president, emphasizes the importance of not waiting until the last days of the year to ensure that accounting is up to date with the relevant supporting documents.



Among the recommendations provided are:


  • Conducting transfer pricing studies for economic groups.
  • Confirming income tax withholdings made by card terminals and the government, suggesting the request for certifications to verify accuracy.
  • Ensuring that salary amounts match those reported to the Costa Rican Social Security Fund (CCSS) and the National Insurance Institute (INS).
  • Maintaining records of professional service contracts and related invoices indicating the provided services.
  • Possessing an auxiliary record of properties, furniture, and equipment.
  • Completing a physical inventory.
  • Providing bank account statements to the accountant.
  • Verifying that income tax withholdings on salaries, dividends, or remittances to foreign suppliers have been completed.
  • Having documentation for payments and contracts related to foreign income to confirm capital origin and yields obtained abroad.
  • Obtaining certifications from an authorized public accountant for non-withholding on dividends, inventory reduction and disposal, deductible in-kind donations, and others.
  • Verifying the completion of all electronic invoices for sales and purchases.
  • Ensuring documentation for cross-border service purchases (such as internet or cloud services), including the platform invoice and card payment proof.
  • Having loan contracts in Spanish.
  • Checking the interest expense limit for loans.
  • Separating taxable income and expenses for income tax on profits from those that are not, such as real estate incomes.
  • For small and medium-sized enterprises (SMEs) registered with the Ministry of Economy, Industry, and Commerce (MEIC) or the Ministry of Agriculture and Livestock (MAG), verifying eligibility for income tax reductions.
  • Checking tax status with the Ministry of Finance.



Zamora highlights the importance of businesses that have ceased economic activities completing their de-registration to avoid issues, including potential fines. The Ministry of Finance’s ATV platform will undergo maintenance and updates. The Tax Standards and Procedures Code establishes sanctions for taxpayer non-compliance, and if sanctioned, taxpayers must use the D-116 form for self-liquidation of administrative offense penalties through the ATV (Virtual Tax Administration). Zamora explains that penalty calculations are based on a percentage of a judicial assistant’s base salary, with the current rate from January 1 to December 31, 2023, being ¢462,200.00. It is essential for taxpayers to have a clear understanding of tax processes.


CRHOY – https://www.crhoy.com/economia/viene-el-cierre-fiscal-2023-tome-en-cuenta-estos-consejos/

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