Assessing tax relief from targeted investment tax incentives through corporate effective tax rates electrónico Methodology and initial findings for seven Sub-Saharan African countries Alessandra Celani, Luisa Dressler, Tibor Hanappi
By: Macedo, Alessandra Celani de
.
Contributor(s): Dressler, Luisa | Hanappi, Tibor.
Material type: 
TextSeries: OECD Taxation Working Papers 58.Publisher: [Paris] OECD [2022]Description: 63 p. gráf.Subject(s): INCENTIVOS FISCALES | INVERSIONES | FISCALIDAD INTERNACIONAL | DESGRAVACIONES FISCALES | IMPUESTO DE SOCIEDADES | ZONAS TRIBUTARIAS ESPECIALES | EVALUACION | ÁFRICAOnline resources: Click here to access online Summary: Corporate tax incentives reduce investment costs for businesses, which may affect investment and location decisions. They apply through different designs and interact with countries’ standard tax systems, often making it difficult for tax policy makers and researchers to compare their generosity and assess their impacts across countries. This paper develops a methodology to calculate forward-looking corporate effective tax rates (ETRs) summarising tax relief from investment tax incentives into comparable indicators. It presents ETR indicators for seven Sub-Saharan African countries. Empirical results show that tax incentives substantially lower corporate taxation across these countries. On average, tax incentives reduce ETRs by 30% in the food and automotive industries compared to the standard tax treatment. ETRs often differ among taxpayers in a same sector and country - by up to 55%. The most generous tax treatment is typically offered within Special Economic Zones, where tax incentives can reduce ETRs to near zero.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Recursos electrónicos | IEF | IEF | OL 1349 (Browse shelf) | Available | OL 1349 |
Disponible en formato electrónico en el Repositorio de la Biblioteca del IEF.
Resumen.
Bibliografía.
Corporate tax incentives reduce investment costs for businesses, which may affect investment and location decisions. They apply through different designs and interact with countries’ standard tax systems, often making it difficult for tax policy makers and researchers to compare their generosity and assess their impacts across countries. This paper develops a methodology to calculate forward-looking corporate effective tax rates (ETRs) summarising tax relief from investment tax incentives into comparable indicators. It presents ETR indicators for seven Sub-Saharan African countries. Empirical results show that tax incentives substantially lower corporate taxation across these countries. On average, tax incentives reduce ETRs by 30% in the food and automotive industries compared to the standard tax treatment. ETRs often differ among taxpayers in a same sector and country - by up to 55%. The most generous tax treatment is typically offered within Special Economic Zones, where tax incentives can reduce ETRs to near zero.
Click on an image to view it in the image viewer
There are no comments for this item.