The role of tax incentives in investments

Outside view of the OECD headquarters in Paris. Around the region, corporate tax rates have continued to be on a declining trend, with Asia having the lowest average corporate tax rate of 19.52%. This compares with the 23.57% average rate in OECD countries and 32% rate in the Group of Seven countries. — Reuters

THE million-dollar question that is being increasingly asked is – how effective is a nation’s tax incentives in attracting investments?

In the current globalised environment, where businesses operate in multiple jurisdictions and are constantly seeking greater efficiency, effective supply chains and cost reduction, countries are compelled to continuously look at ways to attract investments to accelerate economic growth that is both sustainable and equitable.