Many countries in Latin America have also implemented some or the other forms of unilateral digital tax levies to cope with the taxation of the digital economy, like several other countries in other regions of the world. The paper first discusses how the digital economy has progressed in Latin American countries. It then discusses the digital tax landscape in Latin American countries, briefly summarizing the unilateral measures implemented by the countries. Further, the impact of the unilateral digital tax measures adopted in Latin American countries on multinationals has been discussed. It then discusses the VAT toolkit released ‘VAT Digital Toolkit for Latin America and the Caribbean’ in 2021. Towards the end, it discusses the impact of OECD’s Pillar solutions on Latin American countries and the role an effective regional organization can perform in building a uniform tax landscape in the region.
The views in all sections are personal views of the author.