Costa Rica: Draft rules for annual transfer pricing return

Costa Rica: Draft rules for transfer pricing return

The Costa Rican tax authority (Dirección General de Tributación—DGT) on 6 June 2016 released for public consultation, draft rules for taxpayers to apply and follow in filing an annual transfer pricing return. The guidance—in the form of a draft resolution—establishes which taxpayers would be required to file the return, the information and intercompany transactions that would have to be disclosed on the return, the due date for filing the return, and a penalty regime for a failure to comply.

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Qualifying taxpayers

The transfer pricing return would be filled by taxpayers engaged in intercompany transactions and that satisfy the definition of “large taxpayers” or “national large companies” or that operate under the free trade zone regime. 


The annual transfer pricing return would be used by the taxpayer to disclose information about the taxpayer and each intercompany transaction engaged in by the taxpayer. The taxpayer would also be required to disclose the transfer pricing method(s) applied (e.g., Cost Plus, Transactional Net Margin Method) and the results for each type of transaction declared. 

The information to be disclosed in the transfer pricing return would need to correspond to information contained in the taxpayer’s transfer pricing study (also prepared on an annual basis). Accordingly, there would need to be consistency and coherence between the transfer pricing study and the information disclosed on the transfer pricing return. 

Due date

Article 3 of the draft resolution states that the due date for filing the transfer pricing return would be the last business day of June in each year. The first transfer pricing return would be due in June 2017. The return would be filed electronically, on a website platform specifically established for this purpose by the DGT. The website would be made available to taxpayers at least three months before the due date for filing the initial return.

Penalty regime

The draft resolution includes a penalty for taxpayers that fail to file a transfer pricing return, with the penalty amount being equivalent to 2% of the taxpayer’s gross income for the previous fiscal year, but with a minimum penalty of CRC 4.242.000 (approximately U.S. $9,000) and a maximum penalty of CRC 42.420.000 (approximately U.S. $90,000).


Read a June 2016 report [PDF 124 KB] (Spanish and English) prepared by the KPMG member firm in Costa Rica

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