Countries › Costa Rica › Guide › 6. Taxes › Corporate income tax in Costa Rica: 30% on Costa Rican source profits, small company brackets from 5%, prepayments and the 15 March return

Corporate income tax in Costa Rica: 30% on Costa Rican source profits, small company brackets from 5%, prepayments and the 15 March return

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Last verified: 2026-10-29 · Status: Stable

Companies, branches and other entities pay the tax on profits at 30% of taxable income from Costa Rican source activities; companies with gross income up to ₡119,174,000 apply brackets of 5% to 20%, and new MEIC or MAG registered micro and small companies pay a reduced share of the tax in their first six years. The tax year is the calendar year, the return and payment are due two months and fifteen days after year end (15 March), and 75% of the prior year tax is prepaid in three instalments in March, June and September. Foreign source passive income is taxed only where the entity lacks economic substance in Costa Rica.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent. The salario base for 2026 is ₡462,200 (Circular 246-2025 of the Consejo Superior del Poder Judicial, under Ley 7337 art. 2).

Key facts

Corporate income tax, general rate	30 %Ley 7092 art. 15(a), as of 2026-10-29 · in force
Gross income ceiling for the small company scale (2026)	119174000 CRCLey 7092 art. 15(b); Decreto 45333-H art. 3, as of 2026-01-01 · in force
Small company brackets on net income (2026)	5% to ₡5,621,000; 10% to ₡8,433,000; 15% to ₡11,243,000; 20% above Decreto 45333-H art. 3, as of 2026-01-01 · in force
Annual return and payment	Two months and 15 calendar days after 31 December (15 March) Ley 7092 art. 20 and 21, as of 2026-10-29 · in force
Partial payments	75% of prior year tax in three instalments, March, June and September Ley 7092 art. 22, as of 2026-10-29 · in force
Construction or services permanent establishment threshold	183 days in 12 monthsLey 7092 art. 2(b)(2), as of 2026-10-29 · in force

The rule

1. The tax on profits applies to resident individuals, companies and collective entities carrying on lucrative activities of Costa Rican source; income is of Costa Rican source when generated exclusively in the national territory from services rendered, property located, capital invested and rights used there (art. 1).Ley 7092, art. 1, 1988-04-21 official text · verified 2026-10-29

2. Taxpayers include all legally constituted companies whether or not they trade, branches and other permanent establishments of non residents, trusts, E.I.R.L.s and individual businesses. A permanent establishment includes any fixed place of business, construction or installation projects and services through employees lasting more than 183 days in a 12 month period, and dependent agents who habitually conclude contracts (art. 2(a), (b) and (d)).Ley 7092, art. 2(b) as amended by Ley 9635 and Ley 10381, art. 2, 2023-09-14 official text · verified 2026-10-29

3. Rates: 30% for companies; companies whose gross income in the period does not exceed ₡119,174,000 pay 5% on the first ₡5,621,000 of annual net income, 10% up to ₡8,433,000, 15% up to ₡11,243,000 and 20% on the excess (art. 15(a) and (b), amounts for 2026).
Example: Net income of ₡15,000,000 for a company with gross income under the threshold: ₡1,735,150 of tax. / About US$3,815.03 on US$32,980.08.Ley 7092; Decreto Ejecutivo 45333-H, art. 15(a) and (b); Decreto 45333-H art. 3, 2025-11-10 official text · verified 2026-10-29 · changed: Decreto 45333-H of 10 November 2025 updated the brackets by minus 0.38% with effect from 1 January 2026.

4. Micro and small enterprises registered with the MEIC or the MAG may apply the small company scale and pay 0% of the tax in their first three years of business activity, 25% in years four and five and 50% in year six (art. 15(b) as amended by Ley 10392).Ley 7092, art. 15 as amended by Ley 10392, art. 15(b), 2023-11-14 official text · verified 2026-10-29 · changed: Ley 10392 of 14 November 2023 extended the reduction for new MIPYMEs to six years and to individuals.

5. Net income is gross income less costs and expenses necessary to produce it, including cost of goods, remuneration on which payroll withholdings were made, taxes on the business, insurance, interest subject to limits, bad debts and depreciation (art. 7 and art. 8). Not deductible: income and sales taxes, fines and interest on taxes, dividends, remuneration not reported to the CCSS, payments to non cooperative jurisdictions unless proven real, bribes and expenses from hybrid mismatches with foreign related parties (art. 9).Ley 7092, art. 7, art. 8 and art. 9, 2018-12-03 official text · verified 2026-10-29

6. The tax year runs from 1 January to 31 December (art. 4). The return and payment are due within two months and fifteen calendar days after the year end, whatever the amount of income and even if exempt (art. 20 and art. 21).Ley 7092, art. 4, art. 20 and art. 21, 2018-12-03 official text · verified 2026-10-29

7. Partial payments: the base is the higher of the prior year tax or the average of the last three years; 75% of it is paid in three equal instalments by the last business day of March, June and September, and the balance with the return. New taxpayers file an estimate in January (art. 22).
Example: Prior year tax of ₡30,000,000: three instalments of ₡7,500,000 each. / About US$16,490.04 each.Ley 7092, art. 22, 2001-07-04 official text · verified 2026-10-29

8. Foreign source passive income (dividends, interest, royalties, capital gains) of an entity is taxable in Costa Rica unless the entity is a qualified entity with adequate economic substance in Costa Rica for that income: suitable staff and premises, strategic decisions and risks borne in Costa Rica, and related costs incurred; pure holding companies are qualified without the last two tests. Members of a multinational group file an annual information return to prove the status (art. 2 bis to 2 quinquies).Ley 7092, art. 2 bis to 2 quinquies added by Ley 10381, art. 2 bis, 2 ter, 2 quater and 2 quinquies, 2023-09-14 official text · verified 2026-10-29 · changed: Ley 10381 of 14 September 2023 added the qualified entity rules to remove Costa Rica from the EU list of non cooperative jurisdictions.

Annual net income	Rate	USD bracket top
Up to ₡5,621,000	5%	US$12,358.74
₡5,621,000 to ₡8,433,000	10%	US$18,541.40
₡8,433,000 to ₡11,243,000	15%	US$24,719.67
Above ₡11,243,000	20%

Small company scale for 2026 (gross income up to ₡119,174,000; USD at ₡454.82).

Worked example

A subsidiary with taxable income of ₡100,000,000 (US$219,867.20) and gross income above the small company ceiling pays 30%, ₡30,000,000 (US$65,960.16), by 15 March of the following year, less the three prepayments already made.

Step by step

Register in the Registro Único Tributario before starting activity.
Book prepayments for the last business day of March, June and September; ask the tax administration in writing before the due date if income will fall.
File the annual return through the Hacienda systems by 15 March, even with losses or exempt income.
If the company holds foreign investments, file the qualified entity information return to support substance.

Common traps

The small company scale depends on gross income, not net income: crossing ₡119,174,000 of gross income moves all profit to 30%.
Interest paid to quota holders of an S.R.L. is treated as a dividend and is not deductible (art. 8(d)).
Interest on which withholding was not made is not deductible (art. 8(d)).
Salaries not reported to the CCSS are not deductible (art. 9(h)).

Sources

Related: Costa Rica country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

← Taxes in Costa Rica: 30% corporate income tax, 15% on dividends and capital gains, 13% VAT, withholding on payments abroad and municipal taxesWithholding tax on payments abroad from Costa Rica: 15% on dividends, branch profits and interest, 25% on royalties and services, treaty rates →

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