Tax for Education and Culture

The Education and Culture Tax was created by law N° 5923 from 1976 named Taxed for Education and Culture. Certainly, the purpose is to raise funds to support the school system as well as the programs for the Department of Culture.

The tax is applicable to domestic corporations (SRLs, SAs, so on and so forth) and foreign companies registered in Costa Rica. A portion of the tax is paid during the registration of the company (when the articles of incorporation are filed), or when a modification to the articles of incorporation is recorded with the company registry (Registro Nacional). The tax amount is ¢ 750.00 per year. An additional portion of the tax is paid on the net income reported with income tax filing through Hacienda form D-101.

Taxable Income

How is the tax paid?

The tax is calculated on the net income reported in the previous fiscal year. The amount can be paid at the bank just by providing the ID number of the corporation (número de cédula jurídica).

The payment must be made in February and March. After March, it will start accruing interest as established in the Code for Tax Processes. The companies that are not active, must file the form D-110 to let Hacienda know that due to the inactivity it is not subject to the tax.

We hope this information to be helpful. Please feel free to reach us with any questions or comments regarding taxes or corporations.

Francini Vargas, Paralegal at Outlier Legal Services contributed to this article.