Introduction: A Landmark Year for Latin American Tax Transparency
In 2024, Latin America marked a transformative step forward in its efforts to combat tax evasion and illicit financial flows. According to the Tax Transparency in Latin America 2025 report, launched by the Global Forum on Transparency and Exchange of Information for Tax Purposes, regional tax administrations collectively identified EUR 585 million in additional revenues, underscoring the impact of deeper multilateral cooperation, improved exchange of information mechanisms, and strong political commitment across the region.
Building on progress since 2009, Latin American countries have cumulatively uncovered over EUR 28.4 billion in additional tax revenues, penalties, and interest through the effective implementation of international tax transparency standards. This sustained success reflects a growing capacity to mobilize domestic resources and strengthen tax compliance.
The progress stems from the Latin America Initiative, a regional project launched in 2018 with the signing of the Punta del Este Declaration, uniting 15 Latin American members of the Global Forum under a shared goal: to implement international tax transparency standards and unlock domestic resource mobilization.
The Punta del Este Declaration: A Foundation for Reform
Signed in 2018, the Punta del Este Declaration marked a pivotal moment in Latin America’s tax governance, the declaration signaled a political commitment to international tax cooperation and mobilized efforts to strengthen institutional frameworks and adopt the Exchange of Information on Request (EOIR) and the Automatic Exchange of Financial Account Information (AEOI) standards. Six years on, these efforts are yielding measurable results.
Key Achievements in 2024
1. EOIR and Offshore Investigations Yield EUR 94 Million
The use of Exchange of Information on Request and offshore investigations led to the identification of EUR 94 million in 2024 alone, highlighting the growing technical capacity of tax administrations to trace concealed assets and pursue non-compliant taxpayers through international cooperation, Latin American members have effectively implemented the EOIR standard, with 83% of assessed countries achieving a satisfactory rating in peer reviews.
2. AEOI Generates EUR 491 Million in Additional Revenue
Automatic exchanges of financial account information played a central role, with EUR 491 million attributed to AEOI efforts and related voluntary disclosure programmes, by the end of 2024, 10 Latin American jurisdictions had begun automatic exchanges, and 11 are committed to doing so by 2026, however, only 37% of these countries are currently on track for effective implementation, facing challenges in compliance strategies and ensuring financial institutions meet their due diligence obligations.
3. Over 2,000 Bilateral EOI Relationships via the MAAC
The Convention on Mutual Administrative Assistance in Tax Matters (MAAC) continues to expand the region’s global reach. Latin American countries now maintain over 2,000 bilateral exchange of information relationships, spanning more than 140 jurisdictions, substantially boosting transparency and enforcement capacity.
4. High Compliance with International Standards
In 2024, 10 Latin American countries underwent second-round peer reviews under the EOIR standard, all receiving a rating of “Compliant” or “Largely Compliant,” confirming the region’s firm alignment with global norms.
5. Addressing Emerging Risks: Crypto-Assets and Wider Use of Tax Data
Four jurisdictions in Latin America have committed to implementing the Crypto-Asset Reporting Framework (CARF) by 2027 or 2028, furthermore, seven jurisdictions are participating in a pilot project exploring the use of tax information for non-tax purposes—such as tackling corruption, money laundering, terrorist financing, and customs fraud, in 2024, six countries signed a Competent Authority Agreement to operationalize this extended cooperation.
Institutional Support: The Role of Capacity Building and the Global Forum
Capacity building remains at the core of the Latin America Initiative, in 2024 alone, over 360 officials from 17 countries completed e-learning courses developed by the Global Forum, and 61% of participants in capacity-building activities were women, reflecting a commitment to gender equality and female leadership, Latin American officials strengthened their skills through advanced “Train the Trainer” programs and information security management networks, critical for ensuring confidentiality and data safeguards.
Bilateral technical assistance was provided to 11 members, while over 800 officials attended 21 training and experience-sharing events focused on tax transparency. These efforts equip tax authorities with the expertise necessary to effectively leverage cross-border information, ensuring transparency leads to tangible fiscal gains.
Why This Matters: Reclaiming Public Funds and Rebuilding Trust
The gains made in 2024 go beyond revenue collection; increased tax transparency fosters fairer tax systems, greater public trust, and more equitable access to public goods. As illicit flows are curtailed and untaxed assets are brought into the fiscal net, countries can reinvest in essential services such as healthcare, education, infrastructure, and social protection, benefiting millions of citizens.
What Egypt Can Learn from Latin America’s Success
While Latin America’s journey is specific to its regional context, its lessons are globally relevant for countries like Egypt. The Latin American experience offers a practical blueprint for reform:
Political Commitment: Anchoring reforms with a high-level declaration, similar to the one made at Punta del Este, could signal international alignment and national dedication to tax transparency.
Implementing EOIR and AEOI: Operationalizing both standards enables the uncovering of hidden assets and addressing base erosion.
Expanding EOI Networks: Leveraging existing multilateral tools, such as MAAC, can broaden Egypt’s international exchange relationships and enhance compliance.
Preparing for Future Risks: The early adoption of CARF and the integration of tax transparency with anti-money laundering and counter-terrorism financing efforts strengthen resilience against emerging financial crimes.
Investing in Capacity: Strengthening collaboration with the Global Forum and other bodies provides access to technical assistance, peer learning, and training essential for success.
Conclusion: A Regional Model for Global Inspiration
The 2024 results achieved under the Latin America Initiative affirm that coordinated international action, robust political will, and technical capacity building deliver tangible fiscal and developmental outcomes, as Egypt and other emerging economies modernize their tax systems, Latin America’s experience offers a compelling example of how transparency, when strategically implemented, can be a powerful tool for fiscal justice, sustainable development, and good governance.
