Frequently Asked Questions about the Transparency and Ultimate Beneficial Owners Registry (RTBF).

1. What is the Transparency and Ultimate Beneficial Owners Registry?

The Transparency and Ultimate Beneficial Owners Registry (RTBF) is a computer system developed by the Central Bank of Costa Rica. It allows legal entities (companies) and other legal structures such as trusts, third-party resource managers, and nonprofit organizations to provide information to register their participants (shareholders, quota holders, or any other relevant designation depending on the type of entity, parts comprising a trust, or other administrative members of legal structures, etc.) and their ultimate beneficial owners. This system also collects other relevant information to enable effective control in combating tax fraud, money laundering, and terrorism financing.

2. Can information be submitted to the Transparency and Ultimate Beneficial Owners Registry (RTBF) in person with physical documents?

No, the entire process is conducted digitally through a web portal on the internet. In order to encourage voluntary compliance, the General Taxation Directorate provides Tax Kiosks at various Tax Administrations throughout the country, which operate as self-service stations for making such declarations.

3. Who are obligated to provide information to the Transparency and Ultimate Beneficial Owners Registry (RTBF)?

The obligated parties required to provide information are:

1) Legal entities with active capital and/or those assigned a legal identification number by the National Registry,

2) Third-party resource managers,

3) Nonprofit organizations,

4) Private trusts, including foreign trusts with a legal identification number assigned by the National Registry that conduct activities in Costa Rica.

Note: Currently, only legal entities and trusts are required to provide information. Other obligated parties will be incorporated later, with official communication. However, they must have the information available in case competent authorities request it.

4. What happens if the person responsible for submitting information to the Transparency and Ultimate Beneficial Owners Registry (RTBF) does not have a DIMEX or DIDI identification document, or for some other reason cannot obtain a digital signature and therefore cannot make the declaration?

If the person responsible for supplying information does not possess a DIMEX or DIDI identification document and thus cannot obtain a digital signature in Costa Rica, they may submit the information to the RTBF through another person who does have a digital signature. In this case, they must appear before a notary public to either: a) have the notary verify if there is already someone authorized to make the declaration or b) grant a special power of attorney in a public deed so that the authorized person can fill out the declaration. In both cases, the notary must access the Central Directo digital platform to register the authorized person in the RTBF system. After this notarial process, the authorized person can log into the system with their digital signature to make the declaration on behalf of the obligated party. Notaries must follow the guidelines set by the Notarial Superior Council for their notarial activities.

5. What are the penalties for failing to provide the corresponding information to the Transparency and Ultimate Beneficial Owners Registry (RTBF)?

Penalties for non-compliance with information provision are regulated under Article 84 bis of the Tax Procedures and Norms Code and consist of three specific situations:

• Public notaries must check the list of non-compliant individuals when issuing documents to obligated parties and include this information in the document if applicable.

• The National Registry cannot issue legal entity certifications or register documents in favor of obligated parties.

• A proportional pecuniary fine of 2% of the gross income of the legal entity or legal structure will be applied, based on the previous year's income tax period before the infraction, with a minimum of three base salaries and a maximum of one hundred base salaries.