Sellers who participate in “relevant activities” on digital platforms will have their information gathered.
Beginning January 1, 2025, digital platforms that make money for a portion of Costa Ricans will be required to start gathering data, including the names of service providers, the amounts deposited, and the account numbers to which the payments are made.
This is the case with Airbnb, an unconventional lodging network that allows hosts to make money by renting out their homes.
The goal is to submit a report with this data to the General Directorate of Taxation (DGT) of the Ministry of Finance at least one year and a half later, by April 30, 2026.
Following the November 6 publication of the Resolution on the automatic sharing of information identifying vendors who engage in pertinent activities using digital platforms in the Official Gazette, this will be feasible.
By doing this, Costa Rica becomes the first nation in Latin America to completely adhere to the Organization for Economic Cooperation and Development’s (OECD) guidelines regarding the sharing of tax data on online platforms. In response, the firm sent a press release highlighting Airbnb.
When a “relevant service” is offered, platform operators will be required to furnish information, which the resolution defines as:
- The leasing of property
- One type of personal service is one that is dependent on time or task.
- The practice of renting a vehicle in return for money
Additionally, when “relevant activities” like product sales are offered.
The identification MH-DGT-RES-0025-2024 was used when the resolution was issued.
Information that taxes will gather
According to the resolution, each vendor or legal entity (in Airbnb’s instance, the host) must have a report prepared by the platform operator that contains the following details:
- The seller’s name, last name, and identity
- The primary address
- The Costa Rican tax identification number that was given to the seller
- The birthdate
- The listed address for each seller’s property
- The total amount credited for each quarter of the period under report
- How many services he provided and how much he got compensated for
- The account holder’s name where the payment is made
- Any tax, commission, or fee that the platform operator withholds or charges
Platform operators are required to disclose data for a calendar year. In other words, January 1 through December 31. The deadline for submitting it is April 30 of the subsequent year.
The Financial Information Exchange System (SIIF) must be used to send the data to the Tax Administration.
“One by one”
The extremely low proportion of Costa Ricans who are earning money from these services and filing their taxes as required by law is one of the reasons the Ministry of Finance is putting this resolution into effect. This makes it difficult to compete on an even playing field.
For instance, hotels that provide accommodation services are required to pay taxes based on their sales. However, data collected by this outlet suggests that only roughly 5,000 hosts may be registered and paying taxes nationwide. There are at least 44,000 throughout the nation, according to Treasury figures.
The compliance rate may be near 11% based on these estimates, which are not official numbers.
Even having this information beginning in 2026 would not mean an instant improvement in tax compliance and collection, according to statements made by Finance Minister Nogui Acosta in the middle of this year. Going out and locating the hosts or sellers “one by one” would be required, he stated (in the case of other platforms).
“Being formal or informal has neither a benefit nor a penalty for not being so,” Acosta said in reference to individuals who disobey the existing legislation, which mandates that those who make money through platforms pay the appropriate taxes.
“We are going to continue with our idea of trying to locate everyone who is generating income in the country and charge them the corresponding taxes,” he stated.
“It’s not something that will be resolved soon.” Acosta stated, “But we are indeed making the effort and showing interest to tackle it,” in reference to the potential for increased adherence to the law.
The official’s claims are denied by the Costa Rican Chamber of Hotels (CCH), the National Chamber of Tourism (Canatur), and the trade association Tourism for Costa Rica.
“It will strengthen tax compliance.”
Costa Rica was commended by the well-known non-traditional housing company Airbnb for enacting this law.
According to a press release, this strategy promotes fairer competition and upholds the values of openness and tax justice.
He added that this step helps platforms and hosts comply with their tax duties and avoids double charging.
“This resolution does not modify your current tax obligations, but it will strengthen tax compliance,” the business said.
Penalties for noncompliance
According to the resolution, entities that fail to furnish information shall be subject to a penalty equal to a monetary fine equal to 2% of the infringing party’s gross income for the income tax period before the one in which the infringement occurred. Three base salaries will be the minimum fine and up to one hundred base salaries will be the maximum.
The monetary fine will be lowered by 75% if the required party submits the information within three days after the deadline.
