Understanding the D195: Compliance for Inactive Companies in Costa Rica
In Costa Rica, even inactive companies—those not engaging in economic activity—are required to file the D195 Informative Declaration annually through the Ministry of Finance’s Virtual Tax Administration (ATV) platform.
What is the D195?
The D195 is not a tax return; it's a compliance requirement. It ensures that the tax authority maintains updated records of an inactive company’s financial situation. This includes:
- Assets (real estate, vehicles, intangibles, etc.)
- Liabilities (loans, debts, obligations)
- Net equity
What information is required?
Beyond identifying details, the form requires figures in Costa Rican colones for:
- Owned properties or rights (in Costa Rica or abroad)
- Bank balances, receivables, memberships, and intangibles
- Debts with financial institutions or other creditors
A key compliance point: explain your funding.
It is essential to clarify how the company acquired its assets—such as properties or vehicles—particularly when their value exceeds the company's stated capital. In such cases, you must also disclose:
• Loans or shareholder advances
• Third-party financing used for the acquisitions
Failing to provide this information may raise concerns with the tax authorities, especially if the equity does not align with the reported assets. Moreover, it could create complications regarding potential tax liabilities in the event of a future asset sale
How to file
You must file the D195, once a year, between January 1 and April 30, for the previous fiscal year. All amounts are stated in colones, using the exchange rate from the Central Bank if applicable.
What happens after submission?
Once you validate and submit the form, the system generates a receipt and saves the declaration in your ATV account. You’ll receive a confirmation with date, time, and a unique filing number.
Why it matters
Filing the D195 on time maintains your company's legal standing, avoids penalties, and ensures that your financial records are aligned with Costa Rica’s strict transparency standards.
At TCT Outsourcing, we assist clients in preparing and filing their D195 accurately and efficiently. Whether you are an expat managing local investments, a family office, or an independent professional, we ensure your inactive company meets every compliance requirement.
Note: This publication provides general information on legal updates in Costa Rica and does not constitute legal advice. For specific inquiries, we invite you to contact our legal team.