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, including whether the combination of high payroll taxes and generous capital-investment deductions creates 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.

Project Detail

Country

Regional

Project Number

RG-T4968

Approval Date

Project Status

Preparation

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

Can’t find a document? Request information

Preparation Phase

https://www.iadb.org/document.cfm?id=EZIDB001490-611636108-3

TC Abstract

RG-T4968 - Proposal.pdf

May. 26, 2026

English

Have an Environmental or Social issue related to IDB projects? File a Complaint