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Documents de travail du Centre de développement de l'OCDE

Le Centre de développement de l’OCDE tisse des liens entre les pays membres de l’OCDE et les économies émergentes et en développement. Il encourage le dialogue entre eux, afin d’élaborer des solutions novatrices aux enjeux mondiaux en gestation et aux défis du développement. Cette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes les résultats des travaux de recherche du Centre de développement. Ces documents existent en général uniquement en version originale – anglais ou français – avec un résumé dans l’autre langue.

English, French

Revisiting personal income tax in Latin America

Evolution and impact

This study documents the process through which standard tax reliefs and tax allowances reduce the taxable base of the Personal Income Tax (PIT) in Latin American countries by using the models developed in Taxing Wages in Latin America and the Caribbean 2016. The theoretical estimations on the personal income tax are complemented with data from the tax administrations. The study finds that the PIT is progressive, but only paid by a small proportion of formal high-wage earning individuals. On average, more than 80% of the PIT is paid by the richest ten per cent of the population but at average effective rates below the region’s average statutory minimum tax schedule rate. The combination of these factors results in the PIT having a scant revenue-raising capacity and a meagre impact on income redistribution.

English

Keywords: Personal income tax, wage distribution, tax exemptions, tax deductions, tax system
JEL: D31: Microeconomics / Distribution / Personal Income, Wealth, and Their Distributions; H24: Public Economics / Taxation, Subsidies, and Revenue / Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
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