A new OECD report provides policymakers with hands-on tools to improve value for money from investment tax incentives, particularly in developing and emerging economies.
A Practical Guide to Investment Tax Incentives offers concrete advice across the policy lifecycle, supporting policymakers and practitioners make informed choices, balance trade-offs and prioritise reforms.
The report underlines the importance of ensuring that tax incentives deliver clear economic benefits relative to their costs, to support investment attraction and domestic revenue mobilisation. Particular emphasis is placed on potential actions for countries facing more significant resource constraints, recognising that reform options will differ across countries.
Covering each stage of the policy lifecycle – from conception and design to implementation, monitoring, evaluation and reform – the guide highlights why a specific stage matters for effective tax incentive policymaking, common challenges faced in practice, and practical approaches to improve outcomes. Drawing on examples from countries worldwide, it complements existing guidance, including from the OECD and the Platform for Collaboration on Tax, by focusing on implementation and reform in practice, with an emphasis on actionable steps for countries with limited administrative and institutional capacity.
For more information and to access the report, visit: https://www.oecd.org/en/publications/a-practical-guide-to-investment-tax-incentives_427c66a9-en.html.
Enquiries should be directed to the Communications Office in the OECD Centre for Tax Policy and Administration.
