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Options for Low Income Countries' Effective and Efficient Use of Tax Incentives for Investment : Tools for the Assessment of Tax Incentives.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
International Monetary Fund.
Contributor:
International Monetary Fund.
OECD.
United Nations.
World Bank.
Series:
Other papers
World Bank e-Library.
Language:
English
Subjects (All):
Accounting.
Bonds.
Debt.
Debt Markets.
Developing Countries.
Discount Rate.
Emerging Markets.
Equity.
Expenditures.
Finance.
Finance and Financial Sector Development.
Foreign Direct Investment.
Global Economy.
Globalization.
Income Tax.
Inflation.
Insurance.
Intangible Assets.
Legal Framework.
Life Insurance.
Macroeconomics and Economic Growth.
Opportunity Cost.
Private Sector Development.
Public Finance.
Rule of Law.
Tax Administration.
Tax Exemptions.
Tax Policy.
Taxation & Subsidies.
Taxes.
Telecommunications.
Transparency.
Local Subjects:
Accounting.
Bonds.
Debt.
Debt Markets.
Developing Countries.
Discount Rate.
Emerging Markets.
Equity.
Expenditures.
Finance.
Finance and Financial Sector Development.
Foreign Direct Investment.
Global Economy.
Globalization.
Income Tax.
Inflation.
Insurance.
Intangible Assets.
Legal Framework.
Life Insurance.
Macroeconomics and Economic Growth.
Opportunity Cost.
Private Sector Development.
Public Finance.
Rule of Law.
Tax Administration.
Tax Exemptions.
Tax Policy.
Taxation & Subsidies.
Taxes.
Telecommunications.
Transparency.
Physical Description:
1 online resource (1 pages)
Other Title:
Options for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment
Place of Publication:
Washington, D.C. : The World Bank, 2015.
System Details:
data file
Summary:
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.

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