By San José, Costa Rica — Costa Rica’s Ministry of Finance (Ministerio de Hacienda) is intensifying its examination of Sinpe Móvil, the country’s ubiquitous mobile payment platform, to explore potential avenues for bolstering tax revenue collection.
The surge in Sinpe Móvil’s usage, which facilitates money transfers using phone numbers, has prompted Hacienda to delve into its mechanics and assess its role in strengthening tax compliance. In January 2023, the Directorate General of Taxation (DGT) formally requested the Central Bank of Costa Rica (BCCR) to identify users with high transaction volumes, particularly those exceeding 100 monthly incoming transfers.
To understand the legal implications surrounding Sinpe Móvil and its use in Costa Rican commerce, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica.
Sinpe Móvil’s widespread adoption in Costa Rica presents both opportunities and challenges from a legal standpoint. While its convenience has undeniably revolutionized everyday transactions, businesses must remain vigilant about complying with regulations related to electronic payments, data privacy, and consumer protection. Issues such as proper record-keeping for tax purposes, securing user consent for data processing, and handling disputes related to incorrect transfers require careful attention. Understanding these aspects is crucial for fostering a secure and trustworthy digital economy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights offer a crucial reminder that the convenience of Sinpe Móvil must be built upon a solid foundation of legal compliance. As this technology continues to reshape Costa Rica’s financial landscape, businesses and consumers alike must prioritize security and transparency. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
The initial objective was to understand the usage dynamics and estimate the magnitude of commercial transactions that could be subject to taxes.
Mario Ramos, Director of the DGT
Hacienda’s primary concern isn’t businesses receiving payments via Sinpe Móvil, but rather the lack of proper electronic invoice issuance. Starting September 1, 2025, the latest version of electronic invoices will explicitly include Sinpe Móvil as a payment method, providing more transparent data on commercial activities.
However, the BCCR holds a different perspective.
No payment method should act as a tax withholding agent. The responsibility to declare lies with the individual or legal entity receiving the money, not the platform processing it.
Ana María Cerdas, Division of Payment Systems, BCCR
A key challenge is the inability to automatically distinguish personal from commercial transactions within Sinpe Móvil. This limitation makes direct withholding efforts imprecise and potentially ineffective.
In 2024, a mere 1.86% of registered phone numbers received over 100 monthly transactions. Among them, 722 businesses were identified as using the system commercially, averaging over 500 payments per month. Many operate in sectors like finance, commerce, and education, some of which are exempt from Value Added Tax (VAT).
Despite Sinpe Móvil processing ₡10.89 trillion in 2024 and ₡5.98 trillion in the first half of 2025, the BCCR believes the revenue gains from withholding would be minimal compared to the potential disruption to the system’s widespread adoption and user trust.
The marginal benefit is very small compared to the risk of affecting a tool that has democratized transfers and banking.
Marta Soto, Vice President, BCCR
Hacienda and the BCCR are in ongoing discussions to explore mechanisms for enhanced traceability of commercial payments without hindering Sinpe Móvil’s usability. The current strategy focuses on ensuring every business-related transaction is supported by an electronic invoice, thereby strengthening tax control without impacting everyday usage.
For further information, visit the nearest office of Ministry of Finance (Ministerio de Hacienda)
About Ministry of Finance (Ministerio de Hacienda):
The Ministry of Finance is the government ministry responsible for the public finances of Costa Rica. It plays a crucial role in fiscal policy, tax administration, and budget management.
For further information, visit the nearest office of Directorate General of Taxation (DGT)
About Directorate General of Taxation (DGT):
The Directorate General of Taxation (DGT) is the tax authority within the Ministry of Finance responsible for collecting taxes and ensuring compliance with tax laws in Costa Rica.
For further information, visit bancentral.fi.cr
About Central Bank of Costa Rica (BCCR):
The Central Bank of Costa Rica (BCCR) is the country’s central bank. It is responsible for monetary policy, financial stability, and the regulation of the financial system, including payment systems like Sinpe Móvil.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to societal progress. Through innovative approaches and a client-focused philosophy, the firm serves a diverse clientele while consistently pushing the boundaries of legal thought. Their dedication to sharing legal knowledge, through educational initiatives and accessible resources, empowers individuals and strengthens the fabric of Costa Rican society.
