Tax Pressure in Central America

In 2010, when looking at total tax revenue as a percentage of GDP, Costa Rica has the highest ratio in Central America, and ranked fourth in Latin America, behind only Argentina, Brazil and Uruguay.

Friday, November 16, 2012

The study on Tax Statistics in Latin America, by the Organization for Economic Cooperation and Development (OECD), notes that while the ratio of tax revenue to GDP has been growing in Latin American countries, the average of the so called "tax pressure" is still below the average for countries who are members of the OECD.

In Central America, where the report does not contain data for Nicaragua nor Honduras, the country with the lowest total tax revenue relative to GDP is Guatemala where for the year 2010 it was 12%.

In El Salvador this ratio is 15%, in Panama it is 17.7%, while in Costa Rica the tax burden is 20%. For reference, in Argentina it is 33.5%, 31% in Brazil, and 25.2% in Uruguay.

The average of the OECD countries is 33.8%.



More on this topic

Guatemala: Tax Calendar for January 2018

January 2018

Calendar of payments of obligations corresponding to December 2017 and Tax Memorandum on the minimum wages in effect as of January of this year.

From a Memorandum sent by Tezó and Associates:

On December 29, 2017, the Ministry of Labor and Social Welfare published Government Agreement No.

Honduras: Consensus Over Tax Code

July 2016

The private sector and government have agreed on the basis of a bill to amend the Tax Code which will be sent to Congress for approval.

The draft law agreed between the business sector and the Hernández administration includes a single tax for small businesses. 

Costa Rica : Under Discussion Greater Autonomy For Tax Office

October 2013

Experts say that if the Directorate General of Taxation has more autonomy and flexibility it could improve recovery in the country.

The document entitled "The path towards fiscal consolidation " published by the Ministry of Finance, aims to transform the Directorate General of Taxation (DGT) into an entity with greater autonomy in managing its resources and personnel.

IDB Loans $200 Million for Salvadoran Tax System

February 2010

The fiscal strengthening program seeks to increase the Salvadoran treasury’s balance and protect those resources earmarked for social programs.

It will be implemented by the Salvadoran Treasury Ministry over the next two years, and is composed of various elements, among them macroeconomic stability, tax reform, greater efficiency in tax and customs management and better use of subsidies.

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