Tax Policy and Reform for Foreign Direct Investment in Developing Countries
July 1, 1990
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary
This paper identifies tax factors in 21 developing countries that have an impact on foreign direct investment flows. It categorizes those factors into issues associated with tax coordination; tax rates and rate structures; and composition of the tax base. Recent actions by countries reveal no clear pattern in their attempts to increase tax coordination, while many have reduced corporate tax rates and stream-lined tax incentives. However, broad-based tax reform is lacking in most, leaving room for further possibilities in tax reform for attracting foreign investment. The paper also addresses nontax factors that can be instrumental in attracting foreign investment.
Subject: Balance of payments, Corporate income tax, Corporate taxes, Foreign direct investment, Income and capital gains taxes, Income tax systems, Tax incentives, Taxes
Keywords: accelerated depreciation, capital gains tax, cash flow, Corporate income tax, Corporate taxes, fiscal drag, Foreign direct investment, historical cost, Income and capital gains taxes, Income tax systems, physical capital, rate of return, tax liability, tax rate, taxable income, wealth tax, Western Europe, withholding tax, WP
Pages:
66
Volume:
1990
DOI:
Issue:
070
Series:
Working Paper No. 1990/070
Stock No:
WPIEA0701990
ISBN:
9781451960273
ISSN:
1018-5941
