The chapter provides a theoretical and conceptual approach to tax incentives and their desirable and problematic characteristics. It then presents the objectives that, from the international scenario, the OECD’s BEPS Project and the Sustainable Development Agenda seek from their good design and implementation. Finally, it presents the current panorama of such incentives in Latin American countries in general, and in those of the Pacific Alliance in particular, analysing, based on a sample of income and value-added tax incentives, their difficulties in meeting international standards. Finally, it proposes a series of public policy recommendations for improvement.