Aug 12, 2025
This resolution reinstates the legal requirement for companies to file an annual Transfer Pricing Information Return, that is, a detailed report of transactions with related parties (companies in the same group or with which there is a significant economic relationship). This obligation falls primarily on medium-sized and large companies that are part of multinational or local groups where there is common control. In particular, it will apply to companies whose revenues exceed a certain annual threshold established by the DGT (Directorate-General for Tax Administration) and that carry out commercial, financial, or service transactions with related entities, whether abroad or in Costa Rica under special tax regimes (for example, companies in free trade zones). In other words, if a company has had transactions with related companies, it must be assessed whether it reaches the level of revenue or volume of operations that makes it obligated to file this information return.
It is important to note that the obligation includes both international and domestic transactions with related parties, provided they may entail risks of erosion of the tax base in Costa Rica. For example, a local company that buys or sells to a subsidiary of its same group in another country, or to a sister company in a free trade zone, will be covered by the regulations. Very small companies or those without significant economic ties are typically excluded, thanks to the defined income threshold—which seeks to focus the requirement on taxpayers with greater economic capacity and potentially significant tax impact.
Affected companies must submit an electronic Transfer Pricing Information Declaration form through the DGT's virtual platform (Tribu CR). This form must provide detailed information on transactions with related parties, including at least:
Identification of each related party (name, country of residence or jurisdiction).
Nature of the economic relationship with the company (for example: 100% subsidiary, sister company with the same majority shareholder, entity under common control, etc.).
Details of the transactions carried out with each related party, classified by type: sales of goods, purchases, services received or provided, royalties, financing, etc., indicating the amounts in local currency (colons) or other currency as appropriate.
Transfer pricing method used to analyze each transaction category (e.g., Uncontrolled Comparable Price Method, Cost Plus Method, Profit Split Method, among others recognized by transfer pricing regulations).
The profit or margin obtained from these transactions, if applicable, and any adjustments made to bring prices into arm's length conditions.
The requested information is intended to allow the tax authority to assess whether transactions between related parties were carried out at market prices, as required by the arm's length principle in transfer pricing. It is worth mentioning that, according to the economic relationship criteria established in Costa Rican legislation, related parties are considered to be those companies between which there is a relationship of control or significant influence. For example, these typically include companies where one directly or indirectly holds a substantial stake in the capital of the other (for example, 25% or more), companies that share shareholders or directors that allow them to make coordinated decisions, or cases in which one entity is economically dependent on another (such as the sole client or supplier). These definitions come from the Income Tax Regulations and the transfer pricing rules adopted in Costa Rica, aligned with international standards. In short, if two companies are under the same corporate group or there is common decision-making power, the tax administration will most likely consider them related for the purposes of this declaration.
Deadlines for submitting the information return
The Transfer Pricing Information Return must be filed annually, covering the company's annual fiscal year (which in Costa Rica typically coincides with the calendar year, from January 1 to December 31). Resolution MH-DGT-RES-0026-2025 establishes the specific deadline for filing: as a general rule, it must be submitted within the first few months of the year following the close of the declared fiscal year. In practice, the Treasury Department has indicated that the deadline will be around the middle of the following year. For example, the return for fiscal year 2025 must be filed by mid-2026, likely before June 30, 2026, according to DGT guidelines.
Pay attention to the official tax calendar, as the DGT may set the exact due date each year through a notice or tax calendar. However, the general reference of "within the first half of the following year" serves as a guide to preparing the information in advance. It's worth mentioning that, given that this obligation is being reinstated after several years, the authority may grant a special or extended deadline for the first year of its validity to allow taxpayers to adapt. This possibility is not guaranteed, so the safest course of action is to adhere to the standard deadlines and work proactively on preparing the return.
Penalties for failure to comply with the obligation
Failure to file the Transfer Pricing Information Return, filing it late, or filing it with false or incomplete information carries significant consequences. Costa Rican tax regulations (specifically the Code of Tax Norms and Procedures) provide for significant monetary fines for formal noncompliance of this type. Specifically, failure to file a mandatory information return is punishable by a fine equivalent to a percentage of the taxpayer's gross income for the fiscal year in question. Currently, this percentage amounts to 2% of gross income for each violation, with a minimum and maximum amount established by law. In practical terms, the fine cannot be less than 10 base salaries or more than 100 base salaries for each omitted return. (The reference base salary in Costa Rica is adjusted periodically; to give an idea, 100 base salaries exceed ₡46 million colones, or more than US$70,000.) These sanctions are intended to be sufficiently dissuasive to ensure that companies comply with their reporting obligations.
In addition to the financial penalty, noncompliance can increase the risk of tax adjustments. If a company fails to file its information return, the Tax Administration may be inclined to audit its transfer pricing in detail and even make ex officio adjustments to the declared results, recalculating income or deductions as if the transactions had been at market value. If differences are determined in the tax payable, the corresponding late payment surcharges and interest would also be incurred. Therefore, it is crucial that obligated companies comply in a timely manner, thus avoiding fines and potentially greater tax contingencies.
For many companies in Costa Rica, especially those that have never had to file this declaration before, the new requirement may seem challenging. Below are some practical recommendations for successfully completing your first filing:
a) Check if your company is required to: Review your financial statements for the most recent period and determine if your gross income exceeds the threshold established for the transfer pricing information declaration.
b) Identify all related parties and transactions: Make a complete list of your related entities, both inside and outside Costa Rica. Include subsidiaries, sister companies, parent companies, associates, or any business entity with which you have a common ownership or control relationship. Then, list all transactions (sales, purchases, services, loans, etc.) you had with each of them during the year.
c) Prepare or update the Transfer Pricing study: If your business group already has transfer pricing studies, use that information as a basis.
d) Use the Treasury's technological tools in advance: Enter the designated portal and familiarize yourself with the online form for the informative declaration.
e) Check consistency with current tax returns: Verify that the amounts you plan to report in the information return match the amounts recorded in your accounting and in the income tax or VAT returns, as applicable.
Summary – Key parameters of the new obligation:
a) Income threshold: Companies with annual gross income exceeding ₡1 billion (approx. US$1.6 million) are required to file a tax return.
b) Fiscal period considered: Full fiscal year (usual calendar year, January 1 – December 31).
c) Deadline for submission: June 30 of the year following the fiscal year end
d) Means of submission: Electronic form (Transfer Pricing Information Declaration) provided by the DGT.
e) Required information: Details of related parties (identification and relationship), transactions by type with their amounts, and transfer pricing evaluation method used, among other technical data.
f) Penalty for non-compliance: A fine of 2% of gross income for failure to declare, with a limit of 100 base salaries (according to the Tax Code), in addition to possible tax adjustments and interest.
Sources:
Costa Rica – “Definition of related parties and obligations in Transfer Pricing”, DGT (Regulatory Framework)
OECD – “Transfer Pricing Guidelines for Multinationals and Tax Administrations” (alignments adopted by Costa Rica)
Costa Rica – Code of Tax Rules and Procedures, Article 83 (penalties for formal non-compliance)