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A Practical Guide to Investment Tax Incentives
Tax incentives are used widely by governments to attract investment and promote certain behaviour and activities, but they are not always effective at achieving policy goals, and can come with high costs and distortions. These challenges may be more pronounced in developing and emerging economies with resource and administrative constraints.
This guide supports governments, particularly in developing and emerging economies, to better design and implement investment tax incentives. It provides concrete guidance across the policy lifecycle, from conception, to design, implementation, monitoring and evaluation. At each stage, the guide highlights key decision points and practical policy options to improve outcomes and support prioritisation of reforms, drawing on lessons from country experiences worldwide.
This guide supports governments, particularly in developing and emerging economies, to better design and implement investment tax incentives. It provides concrete guidance across the policy lifecycle, from conception, to design, implementation, monitoring and evaluation. At each stage, the guide highlights key decision points and practical policy options to improve outcomes and support prioritisation of reforms, drawing on lessons from country experiences worldwide.
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