In this article, we provide a detailed review of Costa Rica’s (CR) corporate tax regime as it applies to companies as of 2025. This overview covers the progressive tax system, relevant bands and rates, surtax rules for micro and small businesses, and all available tax assessment criteria using only official figures.
Corporate Tax System Overview in Costa Rica
Costa Rica applies a progressive corporate income tax structure, determined by the annual taxable profits generated by companies. The assessment basis is strictly corporate, and the tax regime reflects incremental increases based on gross income bands.
Corporate Tax Rates for 2025
The table below outlines the current progressive tax brackets in Costa Rica for companies, based on annual gross income in Costa Rican colóns (CRC). The equivalent USD values are based on an exchange rate of CRC₡525 = $1, the approximate rate during early 2025. Please adjust for currency fluctuations if needed. Each band is taxed only on the portion of income that fits within the specified range.
| Taxable Income Band (CRC) | Taxable Income Band (USD) | Rate (%) |
|---|---|---|
| ₡0 – ₡5,642,000 | $0 – $10,752 | 5% |
| ₡5,642,000 – ₡8,465,000 | $10,752 – $16,124 | 10% |
| ₡8,465,000 – ₡11,286,000 | $16,124 – $21,489 | 15% |
| ₡11,286,000 – ₡119,629,000 | $21,489 – $227,770 | 20% |
| Over ₡119,629,000 | Over $227,770 | 30% |
The precise tax liability is determined by applying these rates incrementally across income ranges, not as a flat rate on the entire profit.
Surtaxes & Exemptions for Micro and Small Businesses
Costa Rica offers tax relief measures to support micro and small businesses registered under the Ministry of Economy, Industry and Commerce (MEIC) or the Ministry of Agriculture and Livestock (MAG). The following surtax structure is in effect for newly registered smaller enterprises in their initial years of commercial activity. The table below summarizes the policy:
| Years of Operation | Surtax Applied on Normal Corporate Tax (%) | Condition |
|---|---|---|
| 1st to 3rd Year | 0% | No corporate tax paid during the first three years for eligible businesses |
| 4th & 5th Year | 25% | Only 25% of the normal corporate tax applies for these two years |
| 6th Year | 50% | Business pays 50% of calculated corporate tax in the sixth year |
Regular corporate tax rates fully apply from the seventh year onward. This progressive relief aims to support the financial stability of young businesses as they become established.
Key Features and Missing Data
- Tax Type: Progressive, not flat. The rate increases as income increases.
- Assessment Basis: All data refer to corporation-level profits, not individual shareholders.
- Currency: All assessments are performed in Costa Rican colón (CRC).
- Minimum/Maximum Holding Periods: Information is not available from official sources regarding any required asset holding periods for preferential tax treatment or triggering rates. This data is typically relevant for capital gains or participation exemptions and currently has not been disclosed.
- Official Rates: If any base rate is not reflected above, it is because Costa Rica does not publish a flat or single universal rate for all company types – only the bracketed system applies in 2025.
Pro Tips for Navigating Corporate Tax in Costa Rica
- Carefully track annual gross income to ensure accurate calculation at each bracket, since only incremental amounts are taxed at higher rates.
- For micro and small enterprises, register with MEIC or MAG early to benefit from significant surtax exemptions in your early years of operation.
- Use accounting software that allows precise tax simulations under a progressive regime, especially as annual profits approach new brackets.
- Monitor official government updates periodically, as adjustments to brackets or rates can occur annually and may impact tax planning.
- Maintain thorough documentation for status as a micro or small business to defend any claim to tax relief in case of audit or review.
Further Information and Official Sources
Official information and updates on corporate taxation in Costa Rica can be found at the main government portal: hacienda.go.cr.
Costa Rica’s progressive approach to corporate tax combines escalating rates with carefully targeted small business support measures. In summary, tax liability for companies depends directly on annual profit bands, and micro/small companies can benefit from generous relief in their foundational years. As Costa Rica’s regime is subject to changes tied to fiscal policy, staying updated with official communications remains essential for compliant and efficient tax management.