Costa Rica is implementing stricter Ultimate Beneficiary Owner (UBO) requirements to combat against tax evasion in the country.
This new regulation substantially updates the country's tax regulation and procedures code and puts the obligation on companies to disclose their capital and individuals with majority ownership.
The UBO requirements apply to legal persons and legal structures domiciled in Costa Rica, and companies will be obliged to disclose to the Transparency and Final Beneficiaries Registry (Registro de Transparencia y Beneficiarios Finales, RTBF) shareholders and ultimate beneficiaries with "substantive ownership": between 15% and 25% of share capital.
The personal information of the shareholders and ultimate beneficiaries must be collected and disclosed such as, identity number, contact information, passports, capital, type of shares and number of shares. This information must then be submitted through a secure online platform with the Central Bank of Costa Rica (BCCR). The UBO reporting is to be completed on an annual basis.
If the UBO information is not reported, the government can penalize your business at 2% of the profit gained during the last year, which can range from a minimum of three salaries of a government employee in Costa Rica to a maximum of 100 salaries.
UBO disclosure filing deadlines are determined by the last digit of the Costa Rican entity's tax ID number, with entities whose numbers end in a 0 or 1 having to file in September 2019, the latest filing date being January 2020.