On April 25, 2022, the bill on the “Authorization of remission for the formalization and collection of Social Charges” was approved in a second debate, enabling the Costa Rican Social Security Authority, to carry out a remission of debt of employers and independent employees to the Costa Rican Social Security Authority for Sickness and Maternity Insurance and the Disability, Old-Age and Death Regime.

This law authorizes the Costa Rican Social Security Authority to forgive independent workers and employers their debts for fines, surcharges, and interest.

Other institutions may also pardon employers for fines, penalties, and interest on amounts owed them such as the Social Development Fund and Family Allowances, the National Learning Institute, the Mixed Social Assistance Institute, and the Popular Bank.

The law lists common rules to process the forgiveness of debts of both employers and independent workers before the Costa Rican Social Security Authority, such as:

  1. There must be a direct request from the employer or independent worker to avail him or herself of the remission.
  2. The term to benefit from the remission is 12 months from the approval of this law.

The rules apply to employers who meet the following conditions:

  1. The remission of outstanding debts for fines, surcharges, and interest that are more than a year old, as counted from the moment the law enters into force.
  2. If an administrative investigation is initiated for the collection of retroactive periods, the employer, in order to benefit from the remission, must sign, together with the Costa Rican Social Security Authority, a transaction agreement under the terms of this law.
  3. In case of having initiated legal proceedings, the employer must pay the sums corresponding to the expenses incurred by the Costa Rican Social Security Authority for professional fees.

Rules that apply to independent workers:

  1. Workers who are not registered must register.
  2. Once registered, they owe fees.
  3. If an administrative investigation is initiated against an individual for the collection of retroactive periods, in order to benefit from the remission the individual must sign, together with the Costa Rican Social Security Authority, a transaction agreement in which the forgiveness complies with the terms of this law.
  4. An individual who has initiated legal proceedings must pay the expenses incurred by the corresponding Costa Rican Social Security Authority for fees, calculated on the amount paid.

In the next few days, the approved bill will be signed by the Executive Branch and after publication in the Official Gazette become a Law of the Republic.

At BLP we have a team that can assist you with the process. For more information contact us at info@blplegal.com or through WhatsApp, Telegram or Signal at +506 6280 2269.