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Has anyone heard anything new on this tax for this year?
Is it still due 15 January? Are the forms available on line?I spoke to our CR attorney last night, about this issue. Our attorney prepared and filed the luxury property tax declaration, last week. Fortunately, I will not be paying the property luxury tax. However, you are correct, the tax is due January 15th, according to my CR attorney.
[quote=”costaricabill”]Has anyone heard anything new on this tax for this year?
Is it still due 15 January? Are the forms available on line?[/quote]
Last word from my attorney on Jan 4:This an e-mail to inform that the Congress has approved corporation taxes which will become effective April 1st, 2012.
Active corporations will pay 50% of a salary base and non active companies will pay 25% of a salary base per year. Salary base for 2012 is 360,600 colons. This salary base increases every year.
This law still missing a by law and there are inconsistencies that according to some opinions, could delay the law becoming effective in April, but that´s something yet to see.
[b]It is not clear as to when a corporation is active and non active, that being one of the inconsistencies. Active companies are the ones that have or do some kind of business, therefore have an income, non active companies, are those that just hold one or more assets, but that´s a point that needs to be clarified.[/b]
There´s a grace period of three months, from April 1st, to close and unregister companies to not pay this tax, on those cases that the owners consider it´s the best option.
Good morning W41.
You are usually spot on with your replies, but in this case you are referring to the new corporate tax while I was asking about the now 2 year old luxury tax on high end residential properties,
They are both onnerous, and unfortunately I don’t believe the monies collected will ever get to the designated cause, but I don’t want other folks to get confused with the 2 separate taxes.
One affects everyone owning stock in a corporation, and the other affects only those owning high end residential real estate (calculated according to the governments formula).Like most new taxes/fees/fines in Costa Rica it never pays to be ahead of the curve and register/pay before things settle down. Luxury tax in point. Those who did pay are now on the hook every year and those who do owe but didn’t pay haven’t had anything happen to them. Avoiding taxes in Costa Rica is a natural pastime. Follow the lead of the locals and don’t get caught up with your cultural instincts to follow the rules as you would in N.A. I’m sure I’ll get flamed for posting this – but whatever.
agarcia….you are right on point. My expat friends in CR have been trying to beat that into my head for years. However, myself and others, I am sure; are considering the consequences of the wait-and-see, on a CR residency and potential CR residency.
[quote=”costaricabill”] One affects everyone owning stock in a corporation, and the other affects only those owning high end residential real estate (calculated according to the governments formula).[/quote]
Sorry about the confusion.I’d really like to know how our property is evaluated for the luxury tax.
Last year the local municipalidad valued our property at something over 70 million colons. I wonder if this is the figure that will be used or if they will come up with some fantasy number out of the air. 😕[quote=”waggoner41″][quote=”costaricabill”] One affects everyone owning stock in a corporation, and the other affects only those owning high end residential real estate (calculated according to the governments formula).[/quote]
Sorry about the confusion.I’d really like to know how our property is evaluated for the luxury tax.
Last year the local municipalidad valued our property at something over 70 million colons. I wonder if this is the figure that will be used or if they will come up with some fantasy number out of the air. :?[/quote]The luxury tax evaluation is neither based on resale value nor munipical valuation – you can think of it as somewhere in between the two. In their infinite wisdom, the Hacienda came up with their own complicated valuation scheme which of course hampered anyone’s efforts to actually comply with it without spending a small fortune on third parties. I did my own calculation and came up with an amount that was below their limit even though my house would resale for much more (above the luxury tax limit). I did not file this information with them as based on my calculation I wouldn’t have to pay anyways. Again, never provide more information than necessary to this (or any) government. They have said they know who needs to pay but hasn’t and even published a property owner listing to that effect, however they stated the list was based on the intention to build a house that would have likely exceeded the evauation threshold but did not confirm if those buildings were ever built. You see, they really don’t have a clue and have little to back their threats of following up. Now if they were really serious and rolled up their sleeves and walked the neighborhoods, compared munipality records, google/bing maps they could easily find some extra funds – but that requires them to work for it. Fat chance.
[quote=”agarciaI did my own calculation and came up with an amount that was below their limit even though my house would resale for much more (above the luxury tax limit).
They have said they know who needs to pay but hasn’t and even published a property owner listing to that effect,[/quote]Where would find these pieces of information?
It would be good to get an idea as to what they are “thinking” or supposing. 😕
Last year, on this website’s main page, there was an article about how to do your own calculation for this purpose. Purchasing online directions was involved.
I bought the directions, slogged through all the steps, determined that we are not subject to the tax but resolved to submit my form anyway just to demonstrate good faith compliance. Since I could not submit the data online (remember that?) I faxed it to the only number I could find. The Ministry of Hacienda publishes no mailing address and I was goddamned if I was going to conduct a street-by-street search of San Jose looking for them. Despite requesting an acknowledgement, I have received nothing in response.
One of the components of the calculation is a determination of the value of your land which you must do online by finding your exact location on the Ministry’s map and using their per-square-meter valuation which has, of course, no relationship to reality. Other of their values are equally insane, but they all depend upon online tables of values and definitions.
This was no more difficult than preparing a U.S. income tax return for a small business but much less enjoyable.
[quote=”DavidCMurray”] The Ministry of Hacienda publishes no mailing address and I was goddamned if I was going to conduct a street-by-street search of San Jose looking for them.[/quote]
If you need the Ministry de Hacienda in the future :(, stand in the plaza in front of Teatro Nacional and look across the street. It is on the upper floors of the Banco Popular.
If at all possible if I have any dealings with them they will come to see me. 😆
It is looking more and more like we will be having future dealings with them so I suppose I will try to get my feet wet. 🙄
We hired an independent appraiser (maybe a mistake) for around $800 US and submitted those figures along with the luxury tax payment.
This year our legal firm submitted the same numbers and the same tax payment. I still have yet to understand appreciation / depreciation in Costa Rica (it seems more fiction than fact) but what the hell. Just don’t want to take any chances.
The new corporate tax is interesting as well – we sent the monies but are telling our legal firm not to pay it. I sense this will be repealed or changed and we will at least have a balance to handle our segregation this year.
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