Category: Criminal Law

Tax Crime in Costa Rica (2025 Guide): Legal Thresholds, Penalties, Procedure, and Risk Mitigation

This guide explains the legal framework, the elements and thresholds that turn a tax issue into a criminal case,
common risk scenarios, the procedure authorities follow, penalties, and a practical response plan if your company is notified.

• Legal framework
• Elements & criminal threshold
• Common criminal-risk scenarios
• Administrative vs. criminal: key differences
• How investigations progress
• Penalties & collateral impacts
• Compliance program: preventing exposure
• What to do if you’re notified (step by step)
• Frequently asked questions
• Talk to a lawyer

Author: AG Legal Costa Rica • Reviewed by: Tax & White-Collar Team • Updated: Sep 19, 2025

Legal framework

Tax crimes in Costa Rica are primarily regulated by the Tax Code (Código de Normas y Procedimientos Tributarios, Law N.º 4755, as amended, including by Law N.º 9069).
Anti-evasion measures and transparency duties—such as beneficial ownership filing—fall under Law N.º 9416 and its 2024 regulation.
Lower-gravity behaviors are sanctioned as administrative infringements by the Tax Administration.

Elements & criminal threshold

• Intent (dolo): deliberate conduct to obtain an undue patrimonial benefit by evading taxes, withholding/collecting but not remitting, or obtaining undue refunds/benefits.
• Monetary threshold: the defrauded amount must reach at least 500 base salaries. For 2025, base salary is ₡462,200 → threshold ≈ ₡231,100,000.
• Aggravation: fraud above that threshold is treated as a serious criminal offense, with imprisonment as the principal penalty under the Tax Code.

Note: “Base salary” is an official reference set annually and used across penal and tax rules in Costa Rica.

Common criminal-risk scenarios

• Underreporting income or inflating deductions in a way that reaches the criminal threshold.
• Withholding VAT or income tax and failing to remit (e.g., payroll withholdings or third-party retentions).
• False refund claims or improper tax benefits obtained deliberately.
• Use of sham invoices/entities to generate artificial costs or hide beneficial ownership.
• Obstructing oversight (destroying or falsifying records) in connection with fraudulent schemes.

Administrative vs. criminal: key differences

• Administrative infractions: sub-criminal behavior handled by the Tax Administration with fines, surcharges, and interest. Amounts below the criminal threshold—even when serious—are generally resolved administratively.
• Criminal fraud: requires intent and meeting the 500 base-salary threshold; it is prosecuted by the Public Prosecutor’s Office following a referral.

How investigations progress

1. Audit & findings: The Tax Administration conducts an audit. If indicators suggest criminal fraud, it prepares a referral.
2. Referral to prosecutors: Case materials go to the Public Prosecutor’s Office (Ministerio Público).
3. Criminal investigation: Prosecutors and judicial police gather evidence; precautionary measures may be requested.
4. Charging & trial: If charges are filed, the case proceeds through the criminal courts. Parallel tax collection and administrative procedures can continue.

Penalties & collateral impacts

• Imprisonment for serious tax fraud cases meeting the legal threshold (punishment defined by the Tax Code).
• Fines, surcharges, and interest in administrative pathways; these may also accrue in parallel to the criminal case.
• Reputational and banking risk: KYC reviews, credit restrictions, and contract complications.
• Management exposure: directors, accountants, and advisors may face liability where participation is proven.

Compliance program: preventing exposure

• Governance & UBO: keep beneficial ownership filings current (Law 9416), align bylaws/mandates, and maintain corporate records.
• Accounting & e-invoicing: complete ledgers, authorized e-invoices, reconciliations, and documented transfer pricing where applicable.
• Tax positions: written memos for significant deductions/exemptions and consistent treatment across returns.
• Internal controls: segregation of duties for withholdings, payment calendars, and management certifications.
• Response playbook: audit-response SOPs, document preservation, and escalation protocols to counsel.

What to do if you’re notified of a potential tax crime (step by step)

1. Preserve evidence: freeze deletions; secure accounting, bank, and e-invoicing data.
2. Engage counsel immediately: coordinate communications with the Tax Administration and prosecutors.
3. Fact check & quantify: compute exposure vs. the 500 base-salary threshold; assess intent indicators.
4. Prepare your defense file: ledgers, invoices, contracts, expert reports, and governance evidence (UBO filings, board minutes).
5. Define strategy: administrative remedies, payment arrangements (where appropriate), and litigation roadmap.

Frequently asked questions

What is the 2025 criminal threshold?

500 base salaries. With a base salary of ₡462,200 in 2025, that equals about ₡231.1 million.

Does paying the tax eliminate criminal liability?

Payment can reduce financial exposure and may influence prosecutorial criteria, but it does not automatically erase criminal liability. Get case-specific advice.

Are accountants or directors personally liable?

They can be, if evidence shows participation or facilitation. Strong governance and documentation help mitigate risk.

What if my case is below the threshold?

It is generally handled administratively (fines, surcharges, interest). Robust technical defense still matters.

What is “base salary”?

An official reference amount used to set fines/penalties nationwide. Authorities publish it each year; for 2025 it is ₡462,200.

Talk to a lawyer

Facing an audit or a potential criminal referral? Our team handles strategy, defense files, and representation before the Tax Administration and prosecutors.

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