Tax Barriers to Services Imports in Latin America and the Caribbean: The Case of IT Services

This document uses responses from a questionnaire to examine whether tax policy is a barrier to information technology (IT) services imports in Latin America and the Caribbean. The responses show that existing policies do not create a level playing field in the upfront tax burdens paid on transactions, although whether domestic or imported IT services face lower burdens varies by country. The responses also underline that the issue of taxation of services is primarily taken up in double taxation treaties rather than preferential trade agreements, suggesting that trade agreements do not ensure equitable treatment between domestic and imported services as effectively for services as for goods.