The fight against tax evasion and illicit financial flows (IFFs) has become a strategic priority for Latin America. In this context, the report Tax Transparency in Latin America 2025, prepared by the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum), highlights the significant progress made by the 15 Latin American countries that have signed the Punta del Este Declaration, a regional commitment adopted in 2018 to strengthen tax transparency and the exchange of information (EOI).
A regional effort with concrete results
Since 2009, member countries of the Latin American Initiative have identified at least €28.4 billion in additional tax revenue resulting from the implementation of tax transparency standards. In 2024 alone, an additional €585 million was identified through EOI, demonstrating the effectiveness of these tools in strengthening tax compliance and mobilizing domestic resources.
This effort has enabled tax administrations to develop robust information exchange infrastructures, improve their legal and operational frameworks, and foster a culture of regional cooperation. The implementation of automatic (CRS) and on-demand (EOIR) mechanisms has been key to these advances.
Diversity of progress and differentiated cooperation
Although all member countries have shown progress, the level of maturity varies. While some already have solid frameworks in place, others are in the early stages. The Initiative’s approach allows technical assistance to be tailored to the specific needs of each country. In 2024, more than 800 officials participated in training, and tools such as the Train the Trainer Programme and the Information Security Management Network were promoted.
Success stories: from digital platforms to complex corporate operations
The report includes notable cases such as Brazil, which managed to adjust its tax base by €20.4 million after detecting irregularities in a multinational company through EOI, and Guatemala, which identified €3.5 million in omitted income from tourist rentals managed through digital platforms. Peru also detected a simulated sale of shares between related parties, with an additional tax base of €21.5 million.
Towards a new frontier: crypto assets and expanded use of information
One of the report’s novelties is the progressive implementation of the Crypto-Asset Reporting Framework (CARF), which facilitates the automatic exchange of information on transactions involving crypto assets. Brazil, Colombia, Mexico, and Costa Rica have already committed to initiating these exchanges between 2027 and 2028.
In addition, six countries signed an agreement to facilitate the broader use of exchanged tax information, including for non-tax purposes such as combating money laundering and terrorist financing.
Persistent challenges and future opportunities
Despite progress, significant challenges remain, including insufficient prioritization of EOI in some tax administrations, a shortage of human and technical resources, and limited tools to measure the impact on domestic revenue collection (only 20% of countries have these tools). Overcoming these barriers will be crucial to establishing a culture of tax compliance founded on international cooperation.
Fiscal transparency has become a concrete public policy tool in Latin America. The Latin American Initiative has successfully transformed cooperation into a genuine driver of institutional strengthening, increased revenue, and tax equity. The road ahead is still long, but the foundations are in place for the region to continue advancing in fiscal transparency at the global level.
Read the report here