Transfer Pricing Costa Rica
Establish the obligation and procedure for certain taxpayers to submit an annual informative return regarding transactions with related parties, whether domestic or foreign, in accordance with the arm’s length principle.
It is mandatory to have a Transfer Pricing Study that supports the conditions of transactions with related parties, regardless of whether the taxpayer is required to file the informative return. This study must include functional, financial, and comparability analyses that justify that the transactions were conducted in line with the arm’s length principle.
Legal Basis
This obligation is established based on the following legal framework:
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Article 81 bis of the Income Tax Law (Law No. 7092)
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Articles 99, 105, 122, 150, and 174 of the Tax Code
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Regulations on Tax Procedures and Regulations of the Income Tax Law
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Executive Decree No. 43198-H
These provisions form the legal foundation for requiring taxpayers to comply with transfer pricing obligations in Costa Rica, including the submission of the informative return and the preparation of a supporting Transfer Pricing Study.
Obligated Taxpayers
The following taxpayers are required to file the informative return:
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Those who carry out transactions with related parties (whether domestic or cross-border), and meet any of the following criteria:
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Are classified as Large National Taxpayers, or
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Operate under the Free Trade Zone Regime, or
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The total amount of such transactions exceeds 1,000 base salaries.
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Deadline
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The informative return must be submitted within 3 months following the close of the authorized fiscal period.
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For the 2024 fiscal period, the submission deadline will be 6 months after the resolution comes into effect.
Filling Method
The informative return must be submitted exclusively through the TRIBU-CR electronic system.
Form and Structure.
The informative return form includes the following mandatory sections:
Section A: General information about the taxpayer
Section B: Data on related parties
Sections C to F: Based on the type of transaction (tangible goods, intangibles, financial operations, services)
Transfer Pricing Methods: Such as CUP, RPM, CPM, PSM, TNMM, among others
Profitability Indicators: Including gross margin, ROA (Return on Assets), ROCE (Return on Capital Employed), and others
Penalties.
Failure to submit the informative return, or submitting it late without a valid justification within the TRIBU-CR system, will make the taxpayer liable for the sanctions established in the Tax Code.
This proposed resolution represents a significant step forward in the regulation of transfer pricing in Costa Rica. It aligns with OECD guidelines and strengthens tax oversight of transactions between related parties.
Taxpayers are strongly advised to carefully review their intercompany transactions and prepare the necessary documentation to ensure full compliance with these new obligations.