Tax Policy and Reform for Foreign Direct Investment in Developing Countries

Author/Editor:

International Monetary Fund

Publication Date:

July 1, 1990

Disclaimer: 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.

Series:

Working Paper No. 90/70

Subject:

Frequency:

Quarterly

English

Publication Date:

July 1, 1990

ISBN/ISSN:

9781451960273/1018-5941

Stock No:

WPIEA0701990

Format:

Paper

Pages:

66

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