INSUBCONTINENT EXCLUSIVE:
By late 2024, 76% of Costa Ricans over age 15 actively used the system, conducting hundreds of millions of transactions each year.This shift
reduced cash use and cut banking costs, as banks processed fewer cash transactions and managed lower operational expenses
to services, with more than half of users paying for goods or services through the platform
Fuels Widespread Tax Evasion
revenue each year because many businesses exploit this loophole
Experts and tax authorities agree that the payment method itself is not the root cause of evasion.Instead, the lack of integrated controls
enabled widespread underreporting
Many did not, and the government struggled to track these payments effectively.The Ministry of Finance and the Central Bank have responded
by developing a new system to automatically withhold value-added and income taxes
It aims to close the loophole and ensure that businesses pay their fair share of taxes, leveling the playing field for formal and informal
commerce.This move comes as Costa Rica seeks to strengthen its fiscal position and maintain its reputation for financial transparency
