Peru’s Tax Authority Cracks Down on Digital Wallet Income, Targeting Informal Economy
The Peruvian tax authority, SUNAT, is intensifying its scrutiny of income earned through digital wallets like Yape and Plin, aiming to curb tax evasion and bring more businesses into the formal economy. Leveraging advanced data analysis and cross-referencing financial information, SUNAT is focusing on undeclared income, unregistered businesses, and discrepancies between reported earnings and asset acquisitions.
SUNAT is massively crossing information from financial entities, the SBS (Superintendency of Banking and Insurance), and UNIF (Financial Intelligence Unit), utilizing sophisticated risk models and data analysis technologies to identify potential tax offenders. The agency is initially concentrating its efforts on businesses with annual incomes exceeding S/ 45,000, believing these entities possess the financial capacity to meet their tax obligations. However, individuals reporting lower incomes are also subject to oversight.
Internally, SUNAT has determined that 20% of digital wallet users with the highest annual income amounts account for over 80% of the total undeclared revenue. According to Octavio Salazar, a tax lawyer at Ecovis Peru, the S/ 45,000 threshold roughly corresponds to the 80th percentile of income distribution within these digital channels. “From that threshold, the tax entity considers that there is an economic capacity to pay under some of the formal regimes,” Salazar explained.
However, SUNAT’s investigation extends beyond those exceeding S/ 45,000. Individuals and businesses making significant purchases – such as vehicles or real estate – despite reporting low income or lacking formal registration are also under investigation. These cases trigger a “Non-justified patrimonial increase” control, potentially leading to full inspections, tax adjustments, interest, fines, and sanctions for failing to issue payment vouchers. “If the explanation does not align with your declared income, a full control procedure can be initiated with income tax and IGV adjustments, plus interest and surcharges,” a tax expert noted.
Digital Wallets: A New Source of Traceability
Digital wallets are proving to be an invaluable source of traceability for SUNAT. While person-to-person (P2P) payments don’t directly generate taxes, they create a digital record. Funds loaded and withdrawn are subject to the financial transactions tax (ITF) and are automatically reported by financial institutions. This data feeds into SUNAT’s automated systems, enabling the detection of unusual activity, income patterns, and cross-referencing with tax returns, IGV (Value Added Tax), asset purchases, and labor income.
SUNAT is now requiring digital wallet providers to periodically submit user identification (DNI) and transaction amounts. This information is then cross-referenced with existing records, and if business activity is detected – based on volume, frequency, or customer concentration – the user is automatically registered in the RUC (Unique Taxpayer Registry) and notified of their obligations. This process has revealed that many users of Yape and Plin are receiving recurring, substantial payments without issuing invoices or being registered in any tax regime.
As Eduardo Rojas, a partner in the Tax Area of Benites, Vargas & Ugaz (BVU), pointed out, “Even when you activate a digital wallet only with my DNI, a savings account is automatically created in the associated bank, which, from there the situation is equivalent to the cases where a bank account pre-existed.” Digital payments have become transparent; SUNAT can now track every sol received through Yape or Plin.
Balancing Tax Justice with Economic Realities
The increased scrutiny has raised concerns among small merchants and digital entrepreneurs, questioning the fairness of such stringent enforcement against those with modest incomes. Salazar believes that supervision of small merchants is equitable, particularly in fostering competition between formal and informal businesses. However, he emphasized the need for simplification measures, technical assistance, and free tools to prevent the formalization process from becoming overly burdensome, especially for micro-enterprises.
He cautioned that the way supervision is communicated and implemented is crucial. If small merchants perceive SUNAT’s intervention as punitive rather than supportive, it could lead to increased resistance to formalization and a deepening of the informal economy. Therefore, control measures must be accompanied by concrete support strategies, such as formalization programs and visible benefits for taxpayers.
Rojas explained that this increased control is a response to the high level of informality in the Peruvian economy, where over half of all economic activity is unregistered and significant sums of money flow outside the tax system, despite a considerable proportion of these transactions occurring through digital wallets.
The Cost of Non-Compliance
The consequences of being caught receiving undeclared income through digital wallets can be severe. When the source of funds cannot be justified, SUNAT presumes it to be undeclared global income. In such cases, a 30% tax rate is applied to the unjustified amount, along with a 50% fine, plus interest. For example, an informal merchant receiving S/ 100,000 in undeclared digital payments could face a debt of S/ 45,000 in taxes and fines, excluding interest and other penalties for failing to issue vouchers, concealing information, or maintaining proper accounting records. Additionally, any such income is considered third-category income and taxed at 30% on net income.
Fines can be subject to reductions based on a gradual regime, but the extent of the reduction and eligibility depend on factors such as repeat offenses and prompt tax payment.
Formalization: The Path Forward
Both specialists agree that formalization is the most cost-effective long-term strategy. “With or without a RUC, all of us who generate income have the obligation to pay,” Salazar stated. “My recommendation is to register, choose the appropriate regime, issue electronic ballots or invoices for each sale, and keep a basic record of income and expenses.” Rojas added that, in the context of digital transformation, data from digital wallets – when contrasted with tax statements and other fiscal reports – will become a key tool for control mechanisms, promoting greater oversight and potentially triggering audits and evasion complaints.
The key recommendations for those receiving digital payments include: registering with the RUC if engaging in habitual economic activity; choosing the appropriate tax regime (NRUS, RER, MYPE, or GENERAL); issuing electronic ballots or invoices for each sale or service; reconciling income from Yape/Plin with income and IGV statements; maintaining a basic record of income and expenses; avoiding high-value acquisitions without proper documentation; and seeking advice before tax closure to maximize deductions and benefits.
The inspection of digital wallets should not be viewed solely as a revenue collection measure, but as a potential catalyst for reducing informality, improving access to financing, and opening doors to the benefits of the financial system. However, achieving this requires the state to accompany inspection with financial education, free digital tools, and a narrative that prioritizes support for entrepreneurs.
“It is an invitation to act preventively, declare our tax situation honestly, and document everything properly,” Rojas concluded. The message is clear: while Yape and Plin have simplified sales and payments, they are no longer invisible. In an environment of increased financial traceability, operating within the formal economy is no longer an option, but a necessity. Is your business prepared?
