Published.: January 13th, 2025
 

In Costa Rica, the fiscal year-end closing takes place on December 31 each year, marking a crucial moment for fulfilling various tax and fiscal obligations. This process involves not only the internal review of financial statements but also adherence to important deadlines established by law.

Tax Obligations at Year-End Closing

  1. VAT Return: The final Value Added Tax (VAT) return for December must be filed no later than January 15 of the following year.
  2. Corporate Income Tax: This tax is due on March 15 of the following year. However, in 2025, since March 15 falls on a Saturday, the deadline will be moved to Monday, March 17.
  3. Other obligations under the traditional regime:
    • Withholding tax at source.
    • Corporate tax.
    • Other fiscal obligations depending on activity and applicable regulations.
  4. Simplified regime: Returns are simpler and based on purchases recorded during the fiscal year.
  5. Special Agricultural Regime (REA): Designed for the agricultural sector, with rules and deadlines adapted to its characteristics.

What should I consider when preparing the year-end closing?

Proper preparation of the year-end closing is essential to ensure compliance with tax obligations and to take advantage of available tax benefits. This includes reviewing income and expenses, reconciling bank accounts, and keeping accurate accounting records. Below are the key aspects to consider:

  1. Complete bank statements: Make sure to have updated bank statements, including the balance as of December 31.
  2. Customer invoicing: Review all invoices issued and ensure that those related to the income earned during the year are properly recorded.
  3. Purchase ledgers: Depending on the tax regime, it is essential to keep the purchase ledger up to date with complete and accurate records.
  4. Analysis of deductible expenses: Expenses must comply with four basic rules:
    1. Have an official and legal receipt.
    2. The receipt must include your tax ID and legal name (or personal name).
    3. The date must fall within the corresponding fiscal year.
    4. It must be directly related to the nature, objectives, and business activities; otherwise, it will be rejected.
  5. Reconciliations: Perform bank, accounting, and tax reconciliations in advance to ensure that the data is accurate and reflects the company’s real situation.
  6. Review of tax benefits and credits: A well-managed year-end closing allows businesses to maximize available tax benefits and avoid mistakes that may result in penalties.

How can Asicon Consulting help you?

At Asicon Consulting, we understand the importance of the year-end closing to ensure tax compliance and optimize financial resources. Our services include:

  1. Comprehensive advisory services: We guide you throughout the entire closing process, ensuring that your accounting complies with current legislation.
  2. Reconciliations and adjustments: We perform bank, accounting, and tax reconciliations, adjusting data to reflect accurate and reliable information.
  3. Tax return filing: We prepare and file VAT, income tax, and other returns according to your tax regime.
  4. Personalized analysis: We provide a detailed analysis of your tax situation, identifying areas for improvement and resource optimization.

Let our experts in accounting and tax management help you close your fiscal year successfully. At Asicon Consulting, we work to ensure your business complies with its obligations while taking full advantage of all available tax opportunities.