The tax system in Costa Rica is territorial, meaning that taxes are levied on activities and/or assets that have a Costa Rican source. Under Law 4755, known as the Code of Tax Norms and Procedures (CNTP), there are 12 administrative infractions and 1 criminal offense that all business owners and taxpayers must be aware of in order to avoid unnecessary expenses or even imprisonment.
Costa Rica offers attractive levels of education, security, and infrastructure for investment. However, when starting a business, failing to manage tax processes properly—due to omissions or oversights—can result in unnecessary expenses, such as fines of up to $450 USD. Proper tax compliance is essential to avoid these penalties and ensure smooth operations.
The sanctions for administrative infractions result from failing to comply with formal and material obligations established by law and regulation, such as the omission of submitting registration, deregistration, or data modification forms to the Tax Administration, failure to provide relevant tax information, not issuing authorized electronic receipts, not submitting self-assessed tax declarations, being delinquent in the payment of taxes and their interest, among other obligations.
InfractionsOffensesArticle 88Terms of Statute of Limitations
Infractions
Infractions are less serious than crimes or misdemeanors and typically involve non-compliance with formal or procedural requirements. Examples include failing to file tax returns on time, parking violations, or violating minor administrative regulations.
As of 2024, there are 12 specific infractions outlined under Costa Rica's CNPT Law 4755.
Omisión de la declaración de inscripción, modificación de datos o desinscripción (Art. N° 78)
Morosidad en el pago del tributo (Arts. N°s 80 y 80 bis)
Responsabilidad de Terceros (Art. N° 81 bis)
Resistencia a las actuaciones administrativas de control (Art. N° 82)
Incumplimiento en el suministro de información (Art. N° 83)
Incumplimiento del deber de llevar registros contables y financieros (Art. N° 84)
No emisión de facturas (Art. N° 85)
No aceptación de medios alternativos de pago (Art. N° 85 bis)
Infracciones que dan lugar al cierre de negocios (Art. N° 86)
Destrucción o alteración de sellos de cierre de negocios (Art. N° 87)
Offenses
Business owners and taxpayers commit a crime if tax fraud reaches 500 base salaries, subject to the following conditions under Article 92 of Law 4755:
As of 2024, the base salary in Costa Rica is ₡462,200 CRC. If the defrauded amount equals or exceeds ₡231,100,000 CRC (approximately $443,500 USD), the penalty is imprisonment ranging from 5 to 10 years.
Article 92 - Fraud Against the Public Treasury
Article 93 - Breach of the Duty of Probity
Article 88
Law 4755 allows for the reduction of the amount payable for certain infractions under specific conditions. Taxpayers who voluntarily correct their non-compliance or resolve infractions before the Tax Administration takes action can benefit from significant reductions in penalties. These reductions can vary depending on the timing of the correction:
If voluntarily and spontaneously remedied:
If remedied after the action of the Tax Administration:
Terms of Statute of Limitations
Section Six: Statute of Limitations
Article 51.- Terms of Statute of Limitations
The action of the Tax Administration to determine the tax obligation expires after four years. The same term applies for demanding payment of the tax and its interest.
The provisions contained in this article must be applied separately to each tax
