Avoid sanctions and operational problems by ensuring compliance with the new Transparency and Final Beneficiary Registry (RTBF) declaration.
Starting in 2024, Non-Profit Organizations (NPOs) in Costa Rica must comply with new transparency obligations, under the aegis of the Transparency and Final Beneficiary Registry of the Central Bank of Costa Rica (BCCR). This requirement is part of the country’s efforts to align with international regulations, such as those of the OECD.
Who must comply?
All foundations, associations, and other NPOs registered in Costa Rica must submit a detailed declaration on their control structure, primary donors, and beneficiaries.
Information to Report:
NPOs must complete the identification data of the NPO, as well as its control structure, that is, the members of the board of directors, board of directors or equivalent, its donors (who have made contributions equal to or greater than a base salary, CRC 358,609.50 for the second half of 2024), beneficiaries or recipients (as well as for donors) and financial information, with the details of income and expenses of the NPO (Income Statement and Trial Balance).
Procedure and Deadlines:
The presentation must be submitted digitally through the Central Directo platform of the Central Bank of Costa Rica. Only the legal representative or a duly registered attorney may submit the declaration using a valid digital signature certificate. Although it is possible to file the declaration through a Special Proxy, the Tax Administration and the Costa Rican Institute on Drugs (ICD) are working to eliminate this option, requiring that declarations be only by General Proxies registered in the Public Registry.
- Annual declaration: It must be filed in April of each year, but exceptionally, for 2024 the deadline was moved to October, with the deadline being October 31, 2024.
- Extraordinary declarations: In the case of events such as new registrations, transformations, or mergers, the declaration must be filed within 20 business days after the event.
- Corrective declarations: Correcting the information presented is allowed in case of errors.
Consequences of Non-Compliance:
Failure to comply with this obligation may result in:
- Fines equivalent to 2% of the organization’s gross income, according to article 84 bis of the Tax Code.
- Restrictions on the registration of documents in the Public Registry.
- Blocks on procedures with other State entities.
- Banks could require this report as part of the Know Your Customer (KYC) process.
For more information, contact us at [email protected]