Tax Informality in Guatemala and Costa Rica: A Comparative Analysis

Abstract

In the context of developing countries, one of the crucial challenges for governments is the formulation of tax strategies that are adapted to the social and economic reality, with special emphasis on tax collection and the reduction of informality. The complexity of these objectives has been accentuated during and after the pandemic, becoming an even greater challenge. This research
focuses on analyzing how the governments of Guatemala and Costa Rica face the problem of tax informality. The main objective is to evaluate the effectiveness of the programs currently implemented in each country. For this purpose, a literature review and an analysis of their main economic indexes will be carried out with the purpose of determine whether the actions taken have had a significant impact on the reduction of informality levels. It also seeks to understand whether these measures have resulted in a clear improvement in the levels of tax collection and in the expansion of the taxpayer base. However, although the indicators demonstrate economic growth and some programs have increased tax collection. The phenomenon of tax informality is persistent, making it necessary to define an indicator of informal tax collection that contributes to the formulation of fiscal policies, labor
and economic that promotes a favorable and lasting environment, strengthening the formal economy and improving the living conditions of the population.