Tax Systems and Artificial Intelligence in Latin America and the Caribbean
The general objective of this TC is to analyze how artificial intelligence will affect tax systems in Latin America and the Caribbean, including their revenue capacity, efficiency, relative burdens, and redistributive impact, and to identify policy responses for the region. The specific objectives are: (i) to diagnose how current tax structures interact with AI adoption and can create a wedge that accelerates automation; (ii) to identify tax-policy responses that maintain revenue, equity, and efficiency and are robust across different AI-impact scenarios; (iii) to identify tax-policy and incentive measures that steer AI adoption toward complementarity with labor rather than displacement; and (iv) to assess the opportunities and risks of AI adoption in tax administration. The result expected from this TC is an evidence base and a set of actionable policy options that fiscal authorities in the region can draw on to adapt tax policy and tax administration to AI-driven change. The qualitative outcome sought by project end is that tax authorities and fiscal policymakers in Latin America and the Caribbean take the TC's findings into account in their planning and reform discussions.

Project Detail

Country

Regional

Project Number

RG-T4968

Approval Date

July 6, 2026

Project Status

Implementation

Project Type

Technical Cooperation

Sector

REFORM / MODERNIZATION OF THE STATE

Subsector

FISCAL POLICY FOR SUSTAINABILITY AND GROWTH

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental and Social Impact Category (ESIC)

-

Total Cost

USD 230,000.00

Country Counterpart Financing

-

Original Amount Approved

USD 230,000.00
Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/OC-22506-RG Sovereign Guaranteed USD - United States Dollar Ordinary Capital Nonreimbursable
Operation Number ATN/OC-22506-RG
  • Lending Type: Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Nonreimbursable

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 Preparation Phase
https://www.iadb.org/document.cfm?id=EZIDB001490-611636108-3
TC Abstract
RG-T4968 - Proposal.pdf
May. 26, 2026
English

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