Decree No. 41818-H included new modifications and articles to the Regulations to the Income Tax Law, one of which refers to taxes on capital gains from real estate and movable capital.

Transitory VII indicates that taxpayers who file taxes before the Tax Administration for activities that generate capital gains from real estate and movable capital (such as gains related to leases or royalties), will be registered ex officio as taxpayers on capital gains as it relates to real estate or movable capital, as of July 1, 2019.

If instead, taxpayers want to continue under the previous filing category- taxes on profits- they must file an affidavit before the Tax Administration by this Wednesday, July 31. To be eligible, taxpayers need to have at least one employee on the payroll to assist with the generation of said income, and whose salary is subject to the Costa Rican Social Security Administration regime.

The taxpayers who opt for this regime must commit to it for a minimum of five years.

Dentons Muñoz has expert professionals in the field who can advise you and give you the necessary legal support to comply with your tax obligations. Do not hesitate to contact our Tax Department to obtain more information about the scope and implications of this new regulation.