Comparing Tax Incentives across Jurisdictions: A Pilot Study

43 Pages Posted: 18 Nov 2019 Last revised: 20 Nov 2019

See all articles by Markus Meinzer

Markus Meinzer

Tax Justice Network

Mustapha ndajiwo

affiliation not provided to SSRN

Rachel Etter-Phoya

Tax Justice Network

Maimouna Diakite

affiliation not provided to SSRN

Date Written: January 3, 2019

Abstract

Recent research suggests that profit based tax incentives are costly, tend to fail in attracting additional desirable foreign direct investment, and are problematic especially when they are temporary (e.g. tax holidays), geographically confined (e.g. economic zones) and when they provide full tax exemption/nil taxation (vs. tax reduction concession). Yet, there is no publicly available dataset that would allow systematic panel analyses across jurisdictions of these phenomena. This research gap limits the validity and reliability of existing research findings, and constrains future research into the relative effects and costs of tax incentives. Therefore, we analyse 15 countries, testing data availability, comparability and potential criteria for establishing an assessment matrix for a public cross-country dataset of profit based tax incentives. Preliminary findings suggest that when compared, high income countries tend to offer more cost based incentives, while middle and low income countries most often rely on special economic zones and tax holidays.

Keywords: Tax incentives, tax holidays, corporate taxes, capital gains, exemptions and investments, foreign direct investment

JEL Classification: F23, F21, O19

Suggested Citation

Meinzer, Markus and ndajiwo, Mustapha and Etter-Phoya, Rachel and Diakite, Maimouna, Comparing Tax Incentives across Jurisdictions: A Pilot Study (January 3, 2019). Available at SSRN: https://ssrn.com/abstract=3483437 or http://dx.doi.org/10.2139/ssrn.3483437

Markus Meinzer

Tax Justice Network ( email )

38, Stanley Avenue
Chesham, HP5 2JG
United Kingdom

Mustapha Ndajiwo

affiliation not provided to SSRN

Rachel Etter-Phoya (Contact Author)

Tax Justice Network ( email )

38 Stanley Avenue
Chesham, Bucks HP5 2JG
United Kingdom

HOME PAGE: http://taxjustice.net/

Maimouna Diakite

affiliation not provided to SSRN

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