Deadline to File: April 30, 2025
If your company is registered in Costa Rica but is currently not engaged in any business activity, that doesn’t mean you’re off the hook with tax authorities. Even inactive legal entities are required to submit an annual informational return (the D195 Declaration) to stay compliant with tax laws.
In this article, we’ll break down what the D195 is, who needs to file it, what information is required, and how to avoid penalties for non-compliance.
What Is the D195 Declaration?
The D195 is an informational tax return required by the General Directorate of Taxation (DGT) in Costa Rica. It’s designed for legal entities that are registered as inactive, meaning they aren’t conducting any business operations or generating income, but are still legally incorporated.
The purpose of the D195 is to provide the tax authorities with a snapshot of the company’s financial position, including basic data on assets, liabilities, and equity.
Important: This declaration is not a tax payment. It’s simply a required annual report for informational purposes.
Who Is Required to File the D195?
Any company that meets the following conditions must file the D195:
- Legally registered in Costa Rica
- Listed as inactive in the Single Tax Registry (RUT)
This includes all types of entities, such as:
- Corporations (S.A.)
- Limited Liability Companies (S.R.L.)
- Civil associations
- Foundations
- Trusts
Even without any business activity or revenue, these entities must still declare their status to remain compliant.
What Period Does the D195 Cover?
The declaration covers the full previous fiscal year, from January 1 to December 31. The report must be submitted between January 1 and April 30 of the following year.
For the 2024 fiscal year, the deadline to submit the D195 is April 30, 2025.
What Information Should Be Included?
To complete the D195, you’ll need to report general financial information such as:
- Legal name and tax ID
- Estimated value of assets (e.g., property, vehicles, equipment)
- Outstanding debts or liabilities
- Total equity or net worth (assets minus liabilities)
It’s important to have up-to-date accounting records to ensure accuracy in the declaration, even if your company hasn’t been operational.
What Happens If You Don’t File on Time?
Failing to submit the D195 on time — or omitting it altogether — can lead to fines and legal restrictions. Here’s what’s at stake:
- Financial penalties: These can range from ₡46,220 to ₡173,325, depending on the timing and whether the entity self-reports or is sanctioned by the authorities.
- Blocked transactions: The company may be unable to carry out legal or financial procedures, such as requesting certifications or opening bank accounts.
- Additional scrutiny: Late or missing filings may trigger further inspections or enforcement actions.
Need Help With the Process?
Filing tax forms can feel overwhelming, even when your business is inactive. At Across Borders Legal, we simplify the process with step-by-step legal and tax guidance, so you can stay compliant without the stress.
Let us handle the technicalities. You focus on your goals.
Contact us today:
info@acrossborderslegal.com
AcrossBordersLegal.com
WhatsApp: +506 8688 2030 | +506 8880 8736
