Tax certainty—the predictability and stability of tax rules—is a critical factor in attracting foreign direct investment (FDI), as it shapes investors’ expectations for returns and long-term engagement. This is underscored by a recent ECLAC report on FDI in Latin America and the Caribbean (LAC), as well as 2024 PwC Pulse Survey, where 61% of tax leaders identified complexity or … [Read more...] about Boosting Investor Confidence Through Tax Certainty in Latin America and the Caribbean
Electronic Invoicing: A Latin American Innovation with Global Reach
Over the past two decades, electronic invoicing (e-invoicing) has transformed tax administrations worldwide. This innovative solution was created in Latin America and first launched in 2003 in Chile, and then in Brazil and Mexico. Since then, this digital transformation has significantly increased transparency and tax collection and reduced economic informality in many … [Read more...] about Electronic Invoicing: A Latin American Innovation with Global Reach
Unveiling the Truth: How Sticking to Fiscal Rules Boosts Investment in Latin America
There is a widespread belief that fiscal rules hinder public investment. The reasoning is straightforward: to adhere to these rules, governments often must reduce spending, particularly on infrastructure projects, which are not deemed essential in the short term. But is that really the case? New evidence from Europe, emerging markets and Latin America shows otherwise. … [Read more...] about Unveiling the Truth: How Sticking to Fiscal Rules Boosts Investment in Latin America
How Developing Countries Reduce the Impact of Climate Vulnerability on Sovereign Risk
Imagine living in a country where storms, floods, or droughts can cause catastrophic damage to the livelihoods of thousands or even millions of people, undermining a country’s ability to grow and maintain its macroeconomic stability. This is the challenge facing several developing countries all over the world, especially in Latin America and the Caribbean (LAC), where countries … [Read more...] about How Developing Countries Reduce the Impact of Climate Vulnerability on Sovereign Risk
Making Good Macro-Fiscal Forecasts for Medium-Term Fiscal Sustainability: Lessons from International Practice
A Medium-Term Fiscal Framework (MTFF) is an institutional framework designed to guide and inform the public about the achievement of multi-year fiscal policy objectives. It uses medium-term macro-fiscal projections and analyses national or subnational public finances. At the core of an MTFF is a medium-term economic and fiscal outlook report, which forecasts the key government … [Read more...] about Making Good Macro-Fiscal Forecasts for Medium-Term Fiscal Sustainability: Lessons from International Practice