Tax Advisory in Costa Rica

Tax experts will answer your questions about legal and tax reorganization of business groups. Expert consulting on tax matters. Litigation and defense in tax cases against the State, Municipalities and other institutions such as the CCSS. 

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Tax Advisory Services

Tax experts will answer your questions about deductible and non-deductible expenses, payments abroad, taxable vs. non-taxable income, VAT credits, refunds, online procedures before the DGT and TRAVI, issues related to the Costa Rican Social Security Fund, compensation and benefits, tax treatment of inpat and expat, bonuses to collaborators, accelerated depreciation, application of international agreements, entry and compliance with exemption regimes such as free trade zone, destruction of inventories, tax treatment of intangibles, intecompany transactions, transfer pricing, deductibility of interest, payment of dividends, payments similar to dividends, taxation of family businesses, capital gains and losses, application of special rate or rate of 2.25%, capital income versus taxable income with income tax or ordinary regime.

Tax advisory services

Our tax experts will answer your questions related to:

  • Deductible and non-deductible expenses
  • Payments abroad
  • Taxable vs. non-taxable income
  • VAT credits and refunds
  • Online procedures before the DGT and TRAVI
  • Matters related to Caja Costarricense de Seguro Social (Costa Rican Social Security Fund)
  • Compensation and benefits
  • Tax treatment of expatriates and immigrants
  • Employee bonuses
  • Accelerated depreciation
  • Application of international conventions
  • Compliance with free trade zone exemption regimes
  • Inventory destruction
  • Tax treatment of intangibles
  • Intercompany transactions (intercompany)
  • Transfer pricing
  • Deductibility of interest
  • Payment of dividends and payments assimilated to dividends
  • Taxation of family businesses
  • Capital gains and losses
  • Application of the special rate of 2.25%
  • Differences between capital income and taxable income under income tax or ordinary income tax regime

Strategic fiscal planning

Poor tax planning can attract unwanted attention from both government agencies and the media. Regulatory compliance has become increasingly complex, so companies must be prepared for audits, ensuring consistency between financial statements, bank accounts and assets. Public scrutiny for non-compliance can damage brand value and create unnecessary distractions.

There are severe penalties and fines for formal non-compliance. New enforcement approaches include cross-referencing and industry profiling to assess certain taxpayers, as well as new information exchange treaties, international cooperation and detailed government access to corporate financial data.


Our strategy: Listening to our customers

Our secret is to listen carefully to our clients and invest time in developing successful strategies. We spend most of our time understanding your organization and its objectives, so we can better serve your needs.

Our services include the preparation, review and evaluation of:

  • Company organization chart and control relationships
  • Shareholders and beneficial owners
  • Compensation and benefits of high profile executives
  • Group cash flows
  • Functions, assets, intellectual property and transfer pricing
  • Credit liabilities and intra-group financing
  • Key relationships with suppliers and customers
  • Accounts payable and receivable behavior
  • Budget trends
  • EBITDA analysis from a tax perspective
  • Business plans

Knowing your organization

We are committed to getting to know your organization to identify weaknesses and maximize your tax savings opportunities. We ensure corporate compliance with a complete tax assessment and improve what is necessary to take advantage of savings opportunities and minimize tax burden.

Our approach includes:

  • Mapping of main tax and legal risks
  • Evaluation of new business plans
  • Quantification of liabilities
  • Review of contracts from a tax perspective
  • Assessment of the group's total tax burden
  • Implementation of savings opportunities
  • Creation of a fiscal mitigation plan

Regulatory compliance

Through a comprehensive consulting service, your company's accountants, financial managers and controllers can constantly consult our databases of 30 years of accumulated knowledge or talk directly with an expert, accountant or lawyer about the application of a standard to a specific case. Whether it is a question about a new business, about the percentage to be withheld for a payment abroadabout derecognizing an asset o to apply accelerated depreciation, recognize income as capital income or capital gain or as current income, treatment of SMEs o correct recording of an expenseOur experts will give certainty and peace of mind to your accounting team with an expert in your company ready to assist you at any time.

Preventive tax audit

Using our technology-based methodology developed by ICS, we assess the areas of greatest tax risk for prepare your company for a visit from the tax authorities or of social security. Our consultants and analysts will review your company and intercompany transactions. as if they were tax auditors and give you a report with areas of improvement, areas of greatest risk and action plan. We take your company from being in the red, to being in the green and being able to pass the examination of a visit from the authorities.

 

Asset protection

  • Review of the current value of the group's equity and assessment of tax risks
  • Inactive companies and fiscal profile
  • Evaluation of assets and their functions
  • Planning for future use of assets
  • Risk of unexpected capital gains due to lack of back-up in the income source

Advocating support to governmental institutions

  • Monitoring of status related to tax authorities
  • Monitoring and management before the municipality
  • Preventive actions before authorities related to consumer rights
  • Transparency compliance
  • Litigation prevention and monitoring
  • Preventive registration studies

We understand your organization from the "family photo". 

We love to think we have a secret weapon: listening and understanding. The 80% of the answer lies in knowing how to ask the right question. Knowing your organization, your relationships with customers and suppliers, your culture and your legal and financial practices will allow us to advise you correctly. We will develop, analyze and improve, among other elements, the following:

    • Group organization chart

    • Shareholders and beneficial owners

    • Method of payment and remuneration of partners and executives

    • Composition and origin of equity

    • Bank and non-bank liabilities

    • Suppliers and customers

    • Historic invoicing

    • Historical and estimated margins

    • Business plans

    • Compliance

Tax experts will answer your questions about legal and tax reorganization of business groups. Expert consulting on tax matters. Litigation and defense in tax cases against the State, Municipalities and other institutions such as the CCSS. 

Consultation with Our Attorneys

ICS Consultores stands out for offering comprehensive legal advice and customized solutions in Costa Rica. Our team of expert lawyers is ready to help you with all your legal needs, from litigation and contracts to conflict resolution. Trust us to provide you with a high quality legal service tailored to your needs.

ICS Consultants

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