Tax Incentives and Sustainable Investment
Equipping policy-makers to re-evaluate and reform fiscal incentives to attract high-quality investments that provide inclusive and equitable growth, strengthen domestic revenues, and contribute to a just energy transition.
Tax incentives and investment treaties have long been considered essential investment promotion tools. However, developing countries are questioning their effectiveness as they face intense financial pressure and require trillions of dollars to meet the Sustainable Development Goals, address climate change, and preserve global biodiversity. Policy-makers in developing countries are increasingly considering alternative approaches that ensure investments deliver broad benefits. IISD provides guidance, and technical assistance to help policy-makers rethink incentives to ensure that foreign investments fully contribute to economic development and government revenue.
How do we help governments?
We provide guidance and technical assistance to help policy-makers re-evaluate and reform fiscal incentives as well as other investment promotion tools such as investment treaties and double tax agreements. Our goal is to equip policy-makers with the research, analysis, policy tools, and financial modeling expertise to attract high-quality investments that deliver inclusive and equitable growth, strengthen domestic revenues, and contribute to a just energy transition.
We offer long-term bilateral technical assistance programs for government institutions at national and regional levels working on incentives’ design, review, implementation, monitoring, and dispute management.
Are you interested in receiving technical assistance in your country?
Research and Publications
What Drives Investment Policy-makers in Developing Countries to Use Tax Incentives?
The article explores the reasons behind the use of tax incentives in developing countries to attract investment, examining the pressures, challenges, and alternative strategies that exist.
The Global Minimum Tax and Special Economic Zones
Guidance for governments on reforming tax incentives in special economic zones amid the global minimum tax.
Will the Global Minimum Tax Make Special Economic Zones Less Special?
IISD's Tax Director explores how the global minimum tax is reshaping special economic zones and calls on policymakers to review and reform tax incentives in these zones.
Revisiting Tax Incentives as an Investment Promotion Tool: Q&A for investment policy-makers
Are tax incentives effective at attracting investment in developing countries?
A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax
This guide provides policy-makers in developing countries with a simple framework to understand how the 15% global minimum corporate tax may affect them and how to adapt domestic tax policy in response.
Africa Steps Up to Reshape International Tax Rules
As new technologies, shifting demographics, and climate change affect the global economy, tax rules are getting reformed. African policy-makers are seizing the opportunity to push for a fairer system.
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