This document presents a general overview of tax expenditures in Latin America, based on the exploration of the TE database, displaying the observable results in the dimensions of greatest interest and also presenting the potential for analysis provided by this tool.

The accounting and characterization of the various items follow the recommendations included in the CIAT Manual of Best Practices in the Measurement of Tax Expenditures, which allows analyzing the phenomenon from different perspectives. The identification, quantification and publication of tax expenditures reports is of great importance, insofar as it allows knowing the size of the phenomenon, the subjects, sectors, regions or activities benefited and is one of the components of the cost-benefit equation, which the person in charge of policy must analyze to know if the benefit granted through this mechanism has the desired effect and justifies the associated tax sacrifice.

From the official reports made by the countries of the region for the Tax Studies and Research Department of CIAT, a Database of Tax Expenditures (BDGT) was prepared. This was made based on the systematic recording of the information contained in the reports, with an opening to the highest level of disaggregation allowed in each report. A total of 4499 items of tax expenditures included in the last reports of the countries analyzed were recorded. The databases are available in the tax expenditures section of CIATData.

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