Resolution DGT-R-001-2018 was issued by the Costa Rican General Directorate of Taxation (Dirección General de Tributación, DGT) on January 11, 2018. It establishes the obligation to file the Country-by-Country Report (CbC Report) for certain multinational groups, in line with OECD BEPS Action 13.

Who is subject to this resolution?

• Applies to multinational enterprise groups with total consolidated revenues equal to or greater than EUR 750 million (in local currency) in the preceding fiscal year.
• The obligation falls on the ultimate parent entity resident in Costa Rica, or on a designated surrogate entity, if applicable.
• If the parent or surrogate entity files the CbC Report in another jurisdiction that meets OECD standards and has an agreement with Costa Rica, the local entity may be exempt from filing, but must notify the DGT.

What information must be reported?

• Allocation of income, taxes paid, and economic activities by tax jurisdiction.
• A list of all constituent entities of the multinational group.
• Additional details to help tax authorities understand the group’s structure and operations.

Deadlines and Filing Method

• The CbC Report must be submitted to the Costa Rican tax authority no later than December 31 of the year following the reporting fiscal year (e.g., the 2017 report was due by December 31, 2018).
• Notification of the reporting entity (parent or surrogate) must be made by the last business day of March each year, via a digitally signed letter from the legal representative addressed to the Director General of Taxation.
• The report must be filed in XML format, following OECD technical standards.

Penalties for Non-Compliance

• Failure to file the report or notification is subject to penalties under Article 83 of the Costa Rican Tax Code.
• The penalty is 2% of the gross income of the infringer for the previous fiscal year, with a minimum of 3 base salaries and a maximum of 100 base salaries (approximately US$75,000).

Legal Basis and International Context

• The resolution is based on Articles 99 and 106 quáter of the Costa Rican Tax Code, which empower the DGT to issue rules for the automatic exchange of tax information under international agreements.
• Costa Rica signed the Multilateral Competent Authority Agreement for the Exchange of Country-by-Country Reports in 2016, aligning with OECD standards.