The AFIP periodically conducts studies and research related to the fiscal cost of certain measures and fiscal situations by simulating scenarios for taxes and/or spending. To improve these analyses and studies, having useful tools for tax microsimulation, which would enable economic assessment of possible tax-reform proposals, is considered a priority. This will make it possible to bring greater quality and support to studies related to the fiscal cost of certain measures or decisions in the area of taxation.

The microsimulation tool is designed to offer different dynamic analyses using information about the behaviour of the agents affected, collection or the budgetary cost of the measures, as well as variations in income redistribution and social well-being.

EUROsociAL's technical assistance aims to give the AFIP tax microsimulation tools and create a methodological manual for the use of these tools. During the activity, the AFIP officials were shown the Spanish experience and the “know-how” generated in the Institute for Tax Studies, both for the construction of tools and their subsequent use.

Specifically, the IEF experts presented, on the one hand, the data sources needed for creating a microsimulation model (administrative records and surveys) and, on the other, the architecture and functioning of the IEF tax simulator (TaxSim IEF) for the different income tax, VAT and corporate tax modules. In addition, they shared the experience of the European EUROMOD programme, an integrated benefits and taxation simulator at the European level.

This activity is part of the Reform of Tax Systems action of the Public Finance area of the EUROsociAL Programme, financed by the European Union and coordinated by the FIIAPP, in which Spain's Institute for Tax Studies (IEF) and the CIAT are acting as operational partners.