Wednesday, August 10, 2011

New Annual Tax on Corporations

All corporations, branches of foreign companies and limited liability companies must pay in January of each year this tax based on the following parameters: active companies (those conducting a commercial activity) must pay 50% of the base salary (¢158,100 or approximately $300); inactive companies must pay 25% of the base salary (¢79,050 or approximately $150).

Most property owners typically place their property under the name of a corporation and often a vehicle under a different corporation.  Often, in such cases, these are inactive corporations, which would be responsible for paying the $150 annual fee.

When a company is constituted, the tax must be paid proportionally to the time remaining between the date in which the public deed is filed at the Public Registry and the end of the year.

The approved bill grants a period of three months from the date in which the law is in force to dissolve and liquidate the company without paying this tax.

GREEN Management offers a service who can assist you in the payment of this tax or in the process of dissolving and liquidating the company if you require such services.

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