Tax on Legal Entities Declared Unconstitutional – Do I have to pay?
This week the Constitutional Court of Costa Rica declared unconstitutional the tax on legal entities. According with the Court’s decision, this tax is to be paid in 2015, and it will not be until 2016 that all corporations will be released from said duty. Does that mean that the tax is constitutional in 2015 and will become unconstitutional in 2016? There is no logic in that reasoning; the tax is either constitutional or unconstitutional. Consequently, it is our opinion that there is no obligation to pay the corporate tax in 2015. Of course, attempts from the Government to collect the 2015 tax can be expected, and giving the good fight might end up being more expensive than just paying. If you should require more information regarding this or any important matter, please contact us at info@navaslaw.com