New Considerations for Transparency and Beneficial Ownership Registry Filings

On March 8, the new Regulation of the Transparency and Beneficial Ownership Registry (Executive Decree No. 44390-H) was published in the Official La Gaceta, which introduces several significant changes in the filing of this declaration.

Main Changes in the New Regulations:

Responsible for the presentation

The most relevant change is the obligation for the legal representative to file the tax return. The possibility of doing so by means of a special power of attorney is eliminated, only allowing the filing through a very general power of attorney in exceptional cases. However, the process for these cases has not yet been detailed.

It is important to note that, thanks to a provisional injunction filed by the Costa Rican Bar Association, the exclusion of the use of special powers of attorney established by the decree has been suspended.

Information Custody

Custody of all information, records and documentation supporting the due diligence for the filing of the declaration is required. This information must be available in an immediate, accurate and updated manner for the General Directorate of Taxation and the Costa Rican Institute on Drugs, for a period of five years from the date of registration. In case of dissolution, transformation, merger or closing, the information must be maintained for the same period.

Expansion of Regulated Entities

Non-profit organizations and foreign subsidiaries of international non-profit organizations are included as obligated parties. In addition, private trusts that manage property, assets or rights are also required to file the declaration. Those entities that do not have a legal certificate will have to register or assign them.

New Dates for the Declaration 

By means of resolution MH-DGT-ICD-RES-0005-2024, published on March 13, the filing of the tax return has been exceptionally moved to July. Subsequently, it must be filed annually in April.

Importance of Compliance

It is crucial to file on time, as penalties for non-compliance can reach 2% of the gross income of the legal entity or legal structure, corresponding to the profit tax period prior to the infraction, with a minimum of three base salaries and a maximum of one hundred base salaries.

If you have any questions or need professional assistance, please do not hesitate to contact us to arrange a meeting to assist you with your annual corporate compliance.