By San José, Costa Rica — Costa Rica’s rapid growth in Sinpe Móvil transactions has caught the attention of the Ministry of Finance and the Central Bank, prompting them to explore adjustments to improve tax control over the popular mobile payment platform. The primary objective is to identify commercial operations conducted through Sinpe Móvil that are not declaring taxes and are failing to issue electronic receipts.
In January 2023, the Directorate General of Taxation requested that the Central Bank identify users with the highest transaction volumes, particularly those receiving over 100 transfers per month.
To understand the legal implications surrounding Sinpe Móvil and its use in commercial transactions, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica.
While Sinpe Móvil offers undeniable convenience for small transactions and personal transfers, businesses utilizing it for larger or more frequent payments must ensure they are compliant with relevant tax regulations and maintain adequate record-keeping practices. The informal nature of the platform shouldn’t overshadow the formal legal requirements surrounding business income and transactions. Implementing robust accounting procedures specifically tailored to Sinpe Móvil transactions is crucial for transparency and legal compliance.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s cautionary note is crucial for businesses navigating Costa Rica’s evolving digital landscape. The ease of Sinpe Móvil shouldn’t obscure the importance of meticulous record-keeping and adherence to tax laws. This expert advice underscores the need for businesses to adapt their accounting practices to fully leverage the benefits of Sinpe Móvil while remaining compliant. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective.
The goal is to understand the dynamics of use and estimate the potential fiscal impact.
Mario Ramos, Director of Taxation
Starting September 1, 2025, version 4.4 of electronic receipts will include Sinpe Móvil as a payment method, enabling more accurate tracking. Currently, no automatic mechanism differentiates personal from commercial transfers, making it difficult to apply withholding taxes without a margin of error.
In 2024, only 1.86% of registered Sinpe Móvil numbers exceeded 100 monthly transfers. Of those, 722 businesses received over 500 payments per month on average, primarily in sectors like commerce, finance, cooperatives, insurance, and education, some of which are exempt from VAT.
The volume of money moved through the platform is substantial. In 2024, Sinpe Móvil processed ₡10.89 trillion, a ₡2.31 trillion increase compared to 2023. However, the Central Bank cautions that the fiscal benefit of applying withholding taxes would be minimal compared to the risk of impacting the system’s trust and widespread adoption, which has significantly facilitated financial inclusion.
Both institutions are currently in discussions to enhance the traceability of commercial payments without hindering the platform’s usage. This balancing act is crucial to maintaining the benefits of Sinpe Móvil while ensuring compliance with tax regulations.
The government’s challenge lies in finding an effective way to integrate Sinpe Móvil into the formal tax system without discouraging its use. The platform has become a vital tool for individuals and businesses, and any changes must carefully consider the potential impact on its continued success.
For further information, visit the nearest office of Directorate General of Taxation
About Directorate General of Taxation:
The Directorate General of Taxation (Dirección General de Tributación) is the tax authority in Costa Rica responsible for administering and enforcing tax laws. It operates under the Ministry of Finance and plays a critical role in collecting government revenue.
For further information, visit the nearest office of Banco Central de Costa Rica
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (Banco Central de Costa Rica) is the country’s central bank responsible for monetary policy, financial stability, and regulating the financial system. It plays a crucial role in maintaining economic stability and promoting financial inclusion.
For further information, visit the nearest office of Ministry of Finance
About Ministry of Finance:
The Ministry of Finance (Ministerio de Hacienda) in Costa Rica is the government body responsible for the country’s fiscal policy, including budgeting, taxation, and public spending. It works closely with other institutions like the Central Bank and the Directorate General of Taxation to manage the nation’s finances.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-rooted commitment to legal excellence and unwavering ethical practice. The firm’s innovative approach to legal solutions, coupled with its dedication to empowering communities through accessible legal education, reflects a profound belief in fostering a just and informed society. By championing transparency and client partnership, Bufete de Costa Rica continues to build a legacy of integrity while shaping a future where legal knowledge is a tool for empowerment.
