TAX IN INCENTIVES AND FOREIGN DIRECT INVESTMENT IN INTERNATIONAL EXPERIENCE

Authors

  • Jakhongir Makhmudov

Keywords:

Tax incentives, Tax holidays , FDI, property tax, land tax, income tac, corporative tax, tax credits, deductions, exemptions, specific types of investments, service, tax rate, investment climate.

Abstract

Uzbekistan has implemented a number of tax incentives in recent years in order to attract foreign direct investment (FDI). These tax incentives include exemptions from property tax, land tax, and water usage tax; reduced corporate income tax rates; accelerated depreciation for certain types of assets; and exemptions from customs duties on imported equipment and machinery. This article examines the impact of these tax incentives on FDI flows to Uzbekistan. The article finds that the tax incentives have been effective in attracting FDI, particularly to the manufacturing and energy sectors. The article also finds that the tax incentives have helped to create jobs and boost economic growth in Uzbekistan.

References

David Rosenbloom is a professor of international law at New York University Law School. He has written extensively about tax incentives for FDI, including the book Tax Incentives and Foreign Direct Investment: A Global Perspective (2007).

"The Role of Tax Incentives in Attracting Foreign Direct Investment: A Review of the Literature" (2001). Patricia Gomes

Policy Consideration in Using Tax Incentives for Foreign Investment (Andriansyah, Seung Hyung (Luke) Hong, Byunghoon Nam )

How Tax Policy and Incentives Affect Foreign Direct Investment. (Morrisset, Jacques. Pirnia, Neda ) 2012

Corporate Tax Incentives for Foreign Direct Investment Author(s): OECD

THE IMPACT OF A GLOBAL MINIMUM TAX ON FDI

The analysis in WIR15 observes a negative relationship between direct investment from OFCs and the reported rate of return on this investment in host countries, which is indicative of FDI-enabled profit shifting (see also Bolwijn et al., 2018; Janský and Palanský, 2019).

UNCTAD FDI statistics (stock and flows) will be mostly unaffected as they already remove FDI in and by SPEs (as reported by countries) and Caribbean financial centres

"Singapore: Tax Incentives for Foreign Direct Investment" is published by the Singapore Economic Development Board (EDB. 2022 )

"Japan: Tax Incentives for Foreign Direct Investment" is published by the Japan External Trade Organization (JETRO 2020 )

"Uzbekistan: Tax Incentives for Foreign Direct Investment" is published by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan 2022

https://tradingeconomics.com/country-list/personal-income-tax-rate

https://www.jetro.go.jp/en/invest/support_programs/incentive/

https://www.jetro.go.jp/en/invest/support_programs/incentive/

https://www.eu-japan.eu/events/jetros-subsidy-foreign-direct-investment-stimulation-project-accepting-applications

Published

2023-12-01 — Updated on 2023-12-09

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