Options for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment

This background paper describes five different tools that can be used for the assessment of tax incentives by governments in low income countries’ (LICs). The first tool (an application of cost-benefit analysis) provides an overarching framework for assessment. Evaluations of the various costs and benefits of tax incentives are vital for informed decision making, but are rarely undertaken, partly because it can be a difficult exercise that is demanding in terms of data needs. The next three tools (tax expenditure assessment, corporate micro simulation models, and effective tax rate models) can be used as part of a comprehensive cost-benefit analysis, to shed light on particular aspects. Effective tax rate models shed light on the implications of tax parameters - including targeted tax incentives - on investment returns and help understand the implications of reform for expected investment outcomes. The document presents two tools for assessing the transparency and governance of tax incentives in LICs. These discuss principles in transparency and governance of tax incentives, and allow for benchmarking existing LIC practices against better alternatives.

Saved in:
Bibliographic Details
Main Authors: International Monetary Fund, OECD, United Nations, World Bank
Format: Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2015-10-15
Subjects:TAX INCENTIVES, INTERNATIONAL INVESTMENTS, HOLDING, LIABILITY, MARKET STRUCTURE, EQUIPMENT, ACCOUNTING, INTANGIBLE ASSETS, TAX DEDUCTIBLE, STOCK, VALUATION, CORPORATE TAX RATE, WITHHOLDING TAX, TAX BURDENS, INTEREST, COMPLIANCE GAP, LIFE INSURANCE, RATE OF RETURN, GUARANTEES, INTEREST RATE, EXCHANGE, GOVERNMENT REVENUES, DISCOUNT RATE, DEVELOPING COUNTRIES, TAX BASES, REAL INTEREST, REVENUES, TAX COMPLIANCE, BONDS, LOAN, TAX PROVISIONS, DISCOUNT, TAX SYSTEMS, TAX RULES, CAPITAL STOCK, TAX, INCOME TAX, TAXABLE INCOME, BUDGETING, BENEFICIARIES, CORPORATE INCOME TAX, INFLATION, MICRO-DATA, DEVELOPING COUNTRY, INSTRUMENTS, BUDGET, INVESTMENT BEHAVIOR, GLOBAL ECONOMY, BENEFICIARY, CURRENCY, INTEREST EXPENSE, TAX WEDGE, TELECOMMUNICATIONS, PARTIAL CREDIT, TAX PLANNING, CORPORATE INCOME TAXES, PUBLIC FUNDS, CORPORATE TAX RATES, DOMESTIC CAPITAL, PERSONAL INCOME, TAX REGIME, TAX REGULATIONS, TAX LIABILITIES, TAX EXEMPTIONS, INVESTMENT TAX CREDIT, OPTIONS, GLOBALIZATION, MONETARY FUND, DEBT, MARKETS, RETURN, INFLATION RATE, TAX BASE, PUBLIC FINANCE, DIRECT INVESTMENT, TAX REVENUES, REAL INTEREST RATE, INVENTORIES, ASSET CLASSES, INVENTORY, RULE OF LAW, SUBSIDIES, LEGAL FRAMEWORK, FINANCE, CORPORATE TAX, TAX POLICIES, TAXES, TAX REFORMS, INVESTMENT DECISIONS, EXPENDITURE, EQUITY, ALTERNATIVE INVESTMENTS, INCOME TAXES, INVESTORS, MACROECONOMIC DATA, TAX CREDIT, OPPORTUNITY COST, GOOD, TAX INCENTIVE, TAX RATE, TRANSPARENCY, TURNOVER, FUTURE, TAX LAWS, FOREIGN DIRECT INVESTMENT, RETURNS, CAPACITY CONSTRAINTS, LEGAL INSTRUMENTS, BUDGETS, FOREIGN INVESTMENT, TAX REGIMES, INVESTMENT PROJECTS, LOAN GUARANTEES, TAX CONCESSIONS, GOVERNMENT REVENUE, EXPENDITURES, TAX COMPETITION, PROPERTY, INVESTMENT TAX CREDITS, PROPERTIES, TAX EXPENDITURE, TAX RATES, TAX EXPENDITURES, BALANCE SHEET, TAX LIABILITY, MARKET, INVESTMENT CHOICES, TAX REVENUE, TAX SAVINGS, TAX DEDUCTION, SHAREHOLDERS, INSURANCE, TAXATION, PERSONAL INCOME TAX, TAX LAW, GOVERNMENT BONDS, TAX CODE, TAX CREDITS, GOODS, INVESTOR, EFFECTIVE TAX RATES, INTANGIBLE, STOCKS, INVESTMENT, FEDERAL TAX, HOST COUNTRY, INCOME TAX REFORMS, SHARE, TAX SYSTEM, TAXPAYERS, BUSINESS TAX, TAX ADMINISTRATION, REVENUE, TAX POLICY, PROFIT, INVESTMENTS, PERSONAL INCOME TAXES, DEDUCTIONS, CHECK, TAX REFORM, TAX ALLOWANCES, TAX RETURN, INSTRUMENT, PROFITS, CAPITAL INVESTMENT, CASH SUBSIDIES, LIABILITIES, GOVERNMENT ACCOUNTS, TAX RETURNS, TAX PROVISION, CASH FLOW, WITHHOLDING TAXES,
Online Access:http://documents.worldbank.org/curated/en/2015/11/25251583/options-low-income-countries’-effective-efficient-use-tax-incentives-investment-tools-assessment-tax-incentives
https://hdl.handle.net/10986/22924
Tags: Add Tag
No Tags, Be the first to tag this record!