Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank
Experience shows that there is often ample room for more effective and efficient use of investment tax incentives in low-income countries. Tax incentives generally rank low in investment climate surveys in low-income countries, and there are many e...
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| Format: | Report |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/11/25251593/options-low-income-countries-effective-efficient-use-tax-incentives-investment-report-g-20-development-working-group-imf-oecd-un-world-bank http://hdl.handle.net/10986/22923 |
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okr-10986-22923 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
TAX INCENTIVES TARIFFS LIABILITY FOREIGN CAPITAL EQUIPMENT INTANGIBLE ASSETS TAX EXEMPTION STOCK FOREIGN INVESTORS CORPORATE TAX RATE INTEREST OFFSHORE” FINANCIAL CENTERS PUBLIC INVESTMENTS GUARANTEES EMERGING ECONOMIES PROPERTY RIGHTS EXCHANGE LONG-TERM CAPITAL ECONOMIC DEVELOPMENTS SETTLEMENT PROCEDURE DEVELOPING COUNTRIES DOMESTIC MARKET POLITICAL ECONOMY EXPORTERS REVENUES FISCAL POLICY TAX BENEFITS LOAN TAX PROVISIONS TAX SYSTEMS TAX RULES CAPITAL STOCK LEGAL PROTECTIONS TAX TAX DEFERRAL CASH TRANSFER INCOME TAX TREATIES BUDGETING LONG-TERM INVESTMENT LEVEL PLAYING FIELD BENEFICIARIES INVESTMENT PROCESS CREDITORS ENFORCEMENT MECHANISM DOUBLE TAX FOREIGN INVESTMENTS DEVELOPING COUNTRY INSTRUMENTS ENABLING ENVIRONMENT EMERGING MARKET ECONOMIES CREDIBILITY BUDGET EXTERNAL FINANCE SMALL BUSINESS MACROECONOMIC STABILITY ARBITRATION TRANSPARENCY CODE INVESTMENT BEHAVIOR GLOBAL ECONOMY ALLOCATION OF CAPITAL CURRENCY LEGISLATIVE FRAMEWORK PUBLIC FUNDS DOMESTIC CAPITAL CONTRACTS PERSONAL INCOME PERC FINANCES TAX REGIME TRADING TAX EXEMPTIONS OPTIONS MONETARY FUND GLOBALIZATION EMERGING MARKET MARKETS RETURN INTERNATIONAL DEVELOPMENT SETTLEMENT PUBLIC FINANCE INCOME LEVELS INTERNATIONAL ECONOMICS ECONOMIC POLICIES DIRECT INVESTMENT RULE OF LAW WEALTH CREATION LEGAL FRAMEWORK FINANCE BANK POLICY TAX POLICIES MARKET ECONOMIES TAXES EXPENDITURE EMERGING MARKETS EQUITY INCOME TAXES INVESTORS MACROECONOMIC INSTABILITY TAX CREDIT OPPORTUNITY COST VALUE OF ASSETS GOOD TAX INCENTIVE TAX RATE DOMESTIC MARKETS INTERNATIONAL TRADE TRANSPARENCY MARKET FAILURES COMPLIANCE COSTS FUTURE FOREIGN DIRECT INVESTMENT RETURNS LOCAL MARKET FOREIGN INVESTMENT STRATEGIC INVESTOR INVESTMENT PROJECTS LOAN GUARANTEES GOVERNMENT REVENUE EXPENDITURES PROPERTY TAX RATES LOCAL MARKETS MARKET STAMP DUTIES INVESTMENT POLICY TREASURY ECONOMIC DEVELOPMENT INTERESTS LEGAL DRAFTING TAX CODE TAX CREDITS GOODS INVESTOR INTANGIBLE LEGAL SYSTEM INVESTMENT HOST COUNTRY INVESTMENT CLIMATE TAX SYSTEM JUDICIAL SYSTEMS TREATY POLITICAL STABILITY REVENUE TAX POLICY PROFIT TAX DEDUCTIONS INVESTMENTS TAX TREATMENT INTELLECTUAL PROPERTY TRANSITION ECONOMIES INSTRUMENT MICRO DATA PUBLIC SPENDING PROFITS FINANCIAL SYSTEMS LABOR MARKETS PROPERTY RIGHTS PROTECTION DEVELOPMENT BANK LOSS OF REVENUE INVESTING |
| spellingShingle |
TAX INCENTIVES TARIFFS LIABILITY FOREIGN CAPITAL EQUIPMENT INTANGIBLE ASSETS TAX EXEMPTION STOCK FOREIGN INVESTORS CORPORATE TAX RATE INTEREST OFFSHORE” FINANCIAL CENTERS PUBLIC INVESTMENTS GUARANTEES EMERGING ECONOMIES PROPERTY RIGHTS EXCHANGE LONG-TERM CAPITAL ECONOMIC DEVELOPMENTS SETTLEMENT PROCEDURE DEVELOPING COUNTRIES DOMESTIC MARKET POLITICAL ECONOMY EXPORTERS REVENUES FISCAL POLICY TAX BENEFITS LOAN TAX PROVISIONS TAX SYSTEMS TAX RULES CAPITAL STOCK LEGAL PROTECTIONS TAX TAX DEFERRAL CASH TRANSFER INCOME TAX TREATIES BUDGETING LONG-TERM INVESTMENT LEVEL PLAYING FIELD BENEFICIARIES INVESTMENT PROCESS CREDITORS ENFORCEMENT MECHANISM DOUBLE TAX FOREIGN INVESTMENTS DEVELOPING COUNTRY INSTRUMENTS ENABLING ENVIRONMENT EMERGING MARKET ECONOMIES CREDIBILITY BUDGET EXTERNAL FINANCE SMALL BUSINESS MACROECONOMIC STABILITY ARBITRATION TRANSPARENCY CODE INVESTMENT BEHAVIOR GLOBAL ECONOMY ALLOCATION OF CAPITAL CURRENCY LEGISLATIVE FRAMEWORK PUBLIC FUNDS DOMESTIC CAPITAL CONTRACTS PERSONAL INCOME PERC FINANCES TAX REGIME TRADING TAX EXEMPTIONS OPTIONS MONETARY FUND GLOBALIZATION EMERGING MARKET MARKETS RETURN INTERNATIONAL DEVELOPMENT SETTLEMENT PUBLIC FINANCE INCOME LEVELS INTERNATIONAL ECONOMICS ECONOMIC POLICIES DIRECT INVESTMENT RULE OF LAW WEALTH CREATION LEGAL FRAMEWORK FINANCE BANK POLICY TAX POLICIES MARKET ECONOMIES TAXES EXPENDITURE EMERGING MARKETS EQUITY INCOME TAXES INVESTORS MACROECONOMIC INSTABILITY TAX CREDIT OPPORTUNITY COST VALUE OF ASSETS GOOD TAX INCENTIVE TAX RATE DOMESTIC MARKETS INTERNATIONAL TRADE TRANSPARENCY MARKET FAILURES COMPLIANCE COSTS FUTURE FOREIGN DIRECT INVESTMENT RETURNS LOCAL MARKET FOREIGN INVESTMENT STRATEGIC INVESTOR INVESTMENT PROJECTS LOAN GUARANTEES GOVERNMENT REVENUE EXPENDITURES PROPERTY TAX RATES LOCAL MARKETS MARKET STAMP DUTIES INVESTMENT POLICY TREASURY ECONOMIC DEVELOPMENT INTERESTS LEGAL DRAFTING TAX CODE TAX CREDITS GOODS INVESTOR INTANGIBLE LEGAL SYSTEM INVESTMENT HOST COUNTRY INVESTMENT CLIMATE TAX SYSTEM JUDICIAL SYSTEMS TREATY POLITICAL STABILITY REVENUE TAX POLICY PROFIT TAX DEDUCTIONS INVESTMENTS TAX TREATMENT INTELLECTUAL PROPERTY TRANSITION ECONOMIES INSTRUMENT MICRO DATA PUBLIC SPENDING PROFITS FINANCIAL SYSTEMS LABOR MARKETS PROPERTY RIGHTS PROTECTION DEVELOPMENT BANK LOSS OF REVENUE INVESTING International Monetary Fund OECD United Nations World Bank Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank |
| description |
Experience shows that there is often
ample room for more effective and efficient use of
investment tax incentives in low-income countries. Tax
incentives generally rank low in investment climate surveys
in low-income countries, and there are many examples in
which they are reported to be redundant, that is, investment
will have been undertaken even without them. And their
fiscal cost can be high, reducing opportunities for
much-needed public spending on infrastructure, public
services or social support, or requiring higher taxes on
other activities. This paper responds to a request of the
G20 Development Working Group for an exploration of options
for low-income countries’ effective and efficient use of tax
incentives for investment. To that end, it develops
principles for the design and governance of tax incentives
and provides guidance on good practices in these areas.
Since much of the pressure to offer incentives stems from an
awareness of those offered by other countries, the paper
also discusses options for international coordination to
address the risk of mutually damaging spillovers from such
tax competition. Finally, a separate background document
develops practical tools and models that can help assess the
costs and benefits of tax incentives, which is essential for
informed decision making. The aim is thus to assist
low-income countries (LICs) in reviewing and reforming their
tax incentives, so as to better align them with their
developmental objectives. This paper relates to other global
initiatives aimed at strengthening domestic revenue
mobilization in LICs. |
| format |
Report |
| author |
International Monetary Fund OECD United Nations World Bank |
| author_facet |
International Monetary Fund OECD United Nations World Bank |
| author_sort |
International Monetary Fund |
| title |
Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank |
| title_short |
Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank |
| title_full |
Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank |
| title_fullStr |
Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank |
| title_full_unstemmed |
Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank |
| title_sort |
options for low income countries effective and efficient use of tax incentives for investment : a report to the g-20 development working group by the imf, oecd, un and world bank |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/11/25251593/options-low-income-countries-effective-efficient-use-tax-incentives-investment-report-g-20-development-working-group-imf-oecd-un-world-bank http://hdl.handle.net/10986/22923 |
| _version_ |
1764452649710649344 |
| spelling |
okr-10986-229232021-04-23T14:04:12Z Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank International Monetary Fund OECD United Nations World Bank TAX INCENTIVES TARIFFS LIABILITY FOREIGN CAPITAL EQUIPMENT INTANGIBLE ASSETS TAX EXEMPTION STOCK FOREIGN INVESTORS CORPORATE TAX RATE INTEREST OFFSHORE” FINANCIAL CENTERS PUBLIC INVESTMENTS GUARANTEES EMERGING ECONOMIES PROPERTY RIGHTS EXCHANGE LONG-TERM CAPITAL ECONOMIC DEVELOPMENTS SETTLEMENT PROCEDURE DEVELOPING COUNTRIES DOMESTIC MARKET POLITICAL ECONOMY EXPORTERS REVENUES FISCAL POLICY TAX BENEFITS LOAN TAX PROVISIONS TAX SYSTEMS TAX RULES CAPITAL STOCK LEGAL PROTECTIONS TAX TAX DEFERRAL CASH TRANSFER INCOME TAX TREATIES BUDGETING LONG-TERM INVESTMENT LEVEL PLAYING FIELD BENEFICIARIES INVESTMENT PROCESS CREDITORS ENFORCEMENT MECHANISM DOUBLE TAX FOREIGN INVESTMENTS DEVELOPING COUNTRY INSTRUMENTS ENABLING ENVIRONMENT EMERGING MARKET ECONOMIES CREDIBILITY BUDGET EXTERNAL FINANCE SMALL BUSINESS MACROECONOMIC STABILITY ARBITRATION TRANSPARENCY CODE INVESTMENT BEHAVIOR GLOBAL ECONOMY ALLOCATION OF CAPITAL CURRENCY LEGISLATIVE FRAMEWORK PUBLIC FUNDS DOMESTIC CAPITAL CONTRACTS PERSONAL INCOME PERC FINANCES TAX REGIME TRADING TAX EXEMPTIONS OPTIONS MONETARY FUND GLOBALIZATION EMERGING MARKET MARKETS RETURN INTERNATIONAL DEVELOPMENT SETTLEMENT PUBLIC FINANCE INCOME LEVELS INTERNATIONAL ECONOMICS ECONOMIC POLICIES DIRECT INVESTMENT RULE OF LAW WEALTH CREATION LEGAL FRAMEWORK FINANCE BANK POLICY TAX POLICIES MARKET ECONOMIES TAXES EXPENDITURE EMERGING MARKETS EQUITY INCOME TAXES INVESTORS MACROECONOMIC INSTABILITY TAX CREDIT OPPORTUNITY COST VALUE OF ASSETS GOOD TAX INCENTIVE TAX RATE DOMESTIC MARKETS INTERNATIONAL TRADE TRANSPARENCY MARKET FAILURES COMPLIANCE COSTS FUTURE FOREIGN DIRECT INVESTMENT RETURNS LOCAL MARKET FOREIGN INVESTMENT STRATEGIC INVESTOR INVESTMENT PROJECTS LOAN GUARANTEES GOVERNMENT REVENUE EXPENDITURES PROPERTY TAX RATES LOCAL MARKETS MARKET STAMP DUTIES INVESTMENT POLICY TREASURY ECONOMIC DEVELOPMENT INTERESTS LEGAL DRAFTING TAX CODE TAX CREDITS GOODS INVESTOR INTANGIBLE LEGAL SYSTEM INVESTMENT HOST COUNTRY INVESTMENT CLIMATE TAX SYSTEM JUDICIAL SYSTEMS TREATY POLITICAL STABILITY REVENUE TAX POLICY PROFIT TAX DEDUCTIONS INVESTMENTS TAX TREATMENT INTELLECTUAL PROPERTY TRANSITION ECONOMIES INSTRUMENT MICRO DATA PUBLIC SPENDING PROFITS FINANCIAL SYSTEMS LABOR MARKETS PROPERTY RIGHTS PROTECTION DEVELOPMENT BANK LOSS OF REVENUE INVESTING Experience shows that there is often ample room for more effective and efficient use of investment tax incentives in low-income countries. Tax incentives generally rank low in investment climate surveys in low-income countries, and there are many examples in which they are reported to be redundant, that is, investment will have been undertaken even without them. And their fiscal cost can be high, reducing opportunities for much-needed public spending on infrastructure, public services or social support, or requiring higher taxes on other activities. This paper responds to a request of the G20 Development Working Group for an exploration of options for low-income countries’ effective and efficient use of tax incentives for investment. To that end, it develops principles for the design and governance of tax incentives and provides guidance on good practices in these areas. Since much of the pressure to offer incentives stems from an awareness of those offered by other countries, the paper also discusses options for international coordination to address the risk of mutually damaging spillovers from such tax competition. Finally, a separate background document develops practical tools and models that can help assess the costs and benefits of tax incentives, which is essential for informed decision making. The aim is thus to assist low-income countries (LICs) in reviewing and reforming their tax incentives, so as to better align them with their developmental objectives. This paper relates to other global initiatives aimed at strengthening domestic revenue mobilization in LICs. 2015-11-09T23:13:11Z 2015-11-09T23:13:11Z 2015-10-15 Report http://documents.worldbank.org/curated/en/2015/11/25251593/options-low-income-countries-effective-efficient-use-tax-incentives-investment-report-g-20-development-working-group-imf-oecd-un-world-bank http://hdl.handle.net/10986/22923 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ IMF, OECD, UN, and World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |