What is the Education and Culture Tax?
If you have a corporation in Costa Rica, you might have heard about the Education and Culture Tax.
This is a tax that legal entities must pay, based on the amount of capital reported on their income tax return, and is collected by Hacienda from February to March each year.
Just like the Corporate Tax, you can pay this online through a bank per the following instructions:
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Companies whose net capital does not exceed five hundred thousand colones (¢ 500,000.00) will pay five thousand colones (¢ 5,000.00).
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Companies whose net capital exceeds five hundred thousand colones (¢ 500,000.00) but does not exceed two million colones (¢ 2,000,000.00) will pay six thousand colones (¢ 6,000.00).
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Companies whose net capital exceeds two million colones (¢ 2,000,000.00) but does not exceed four million colones (¢ 4,000,000.00) will pay twelve thousand colones (¢ 12,000.00).
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Companies with a net capital of more than four million colones (¢ 4,000,000.00) will pay eighteen thousand colones (¢ 18,000.00).
Those corporations that do not declare any Income Tax, must first prepare the “Official Payment Receipt D-110” form. Once the Payment receipt form has been prepared, the taxpayer must present it and pay the tax at an authorized entity.
Keep in mind that Hacienda (Revenue Service) has the authority to adjust the tax base amounts every three years.