Sunday , May 29, 2022 |   13:47:46 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
TP - No transfer pricing adjustment on account of intra group services provided by assessee to its AE is warranted following rule of consistency: ITAT (See 'Breaking News') I-T - Receipts from standby maintenance charges cannot be taxed as FTS, within meaning of section 9(1)(vii) if there is no rendering of services: ITAT (See 'Breaking News') GST - Composite Supply trumps Aspect Theory! 'Marble cake federalism' blossoming in India! (See 'Taxindiaonline') DTAA - If assessee during one year does not opt for tax treaty, it would not be precluded from availing benefits of said treaty in subsequent years: ITAT (See 'Breaking News') I-T - Factual dispute as to refusal of DRP to entertain objections of assessee regarding draft assessment, on ground that final assessment order had been passed, merits examination: HC (See 'Breaking News') I-T - Invocation of Sec 263 can't be said to be without jurisdiction merely because intimation of DIN to order passed u/s 263 was one day after order was passed: HC (See 'Breaking News') TP - Guarantee issued by commercial bank cannot be compared against corporate guarantee issued by holding company to its subsidiary company: ITAT (See 'Breaking News') I-T - Payment by resident Indian distributors to non-resident software suppliers, as consideration for use of software, is not payment of royalty and same does not give rise to any income taxable in India: HC (See 'Breaking News') Foreign Investment Facilitation Portal completes 5 years (See 'TII BREIF') TP - Loss or gain arising on account of abnormal fluctuation or abnormal movement in forward exchange contracts has to be treated as non-operating in nature: ITAT (See 'Breaking News') DTAA - Payment made by Indian subsidiary for use of overall ICT Infrastructure set up by its Netherlands parent entity would fall within term 'Royalties': ITAT (See 'Breaking News') Taxation of Crypto assets in India (See 'TII EDIT') Analysis and impact of SC judgment in Mohit Minerals (See 'Taxindiaonline') TP - What is essential for ascertaining taxability or otherwise of subsidy is to see the purpose for which it was granted: ITAT (See 'Breaking News') I-T - It is mandatory for AO to pass Draft Assessment Order in accordance with procedure laid down u/s 144C - YES: ITAT (See 'Breaking News')
 
TII SEARCH
 
 
   
Home >> News Brief
 

Tax-to-GDP ratio dips for LAC tax jurisdictions
By TII News Service
Apr 29, 2022 , Paris

    

TAX revenues in Latin America and the Caribbean (LAC) fell by 8.0% on average in nominal terms and by 0.8% as a share of GDP in 2020 because of the COVID-19 pandemic, according to a new report released today. However, the region’s economic recovery and a rebound in commodity prices supported a recovery in tax revenues in 2021

Revenue Statistics in Latin America and the Caribbean 2022, released during the 56th General Assembly of the Inter-American Center of Tax Administrations (CIAT), shows that the decline in tax revenues in LAC in 2020 exceeded the region’s economic contraction in nominal terms. Tax-to-GDP ratios fell in 20 of the 26 LAC countries covered by the report and LAC’s average tax-to-GDP ratio fell by 0.8 percentage points (p.p.) to 21.9%. Tax-to-GDP ratios in the LAC region ranged from 12.4% in Guatemala to 37.5% in Cuba in 2020.

Revenues from all main tax categories declined in nominal terms between 2019 and 2020 on average across the LAC region. Taxes on goods and services, which accounted for about half of total tax revenues in LAC, were the worst affected, decreasing by 0.7% of GDP on average. Revenues from corporate income tax (CIT) declined by 0.2% of GDP while revenues from personal income tax (PIT) and social security contributions (SSCs) remained relatively stable as a percentage of GDP.

The impact of the pandemic on tax revenues differed between LAC and the OECD. As a percentage of GDP, taxes on goods and services remained unchanged in the OECD, while CIT revenues declined by twice as much as those in the LAC region and PIT and SSCs both increased. Relative to the OECD, PIT and SSCs accounted for a small share of total tax revenues in the LAC region (28.2% in LAC in 2020 versus 49.4% in the OECD in 2019).

A special feature in the report highlights a decline in hydrocarbon revenues for a sample of major producers in the LAC region, from 3.1% of GDP in 2019 to 2.1% of GDP in 2020, but these revenues rebounded to an estimated 3.0% of GDP in 2021. Meanwhile, mining revenues for major producers in the region fell from 0.4% of GDP in 2019 to 0.3% in 2020 but rose to an estimated 0.6% of GDP in 2021. A second special feature tracking monthly revenue data during the COVID-19 pandemic for a sample of 18 LAC countries reveals that cumulative revenues from PIT, CIT, VAT and excises between January and August 2021 rose 4.6% in real terms from the equivalent period in 2019 as economies in the region recovered.

Revenue Statistics in Latin America and the Caribbean 2022 is a joint publication by CIAT, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), the Inter-American Development Bank (IDB), the Organisation for Economic Co-operation and Development (OECD) Centre for Tax Policy and Administration and the OECD Development Centre. A launch event for the 2022 edition of the report will take place during ECLAC’s XXXIV Regional Fiscal Policy Seminar.

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2020 | Privacy Policy | Taxindiainternational.com Pvt.Ltd. All rights reserved.