Panama has the lowest indirect taxes

Panama has the lowest indirect taxes in Latin America, with a 7% VAT charged on consumer purchases, according to professional services firm KPMG.

Honduras has the region’s highest indirect tax, at 18%.

The average is 15% in Latin America, where Argentina at 22% has the highest rate.

Sales tax was the measure used for Costa Rica and Honduras, neither of which charges a VAT on goods and services (countries are listed in order of rate of tax expressed as a percentage).


1            Panama      8

2            Guatemala  12

3            Costa Rica  13

4            El Salvador 13

5            Nicaragua   15

6            Honduras    18