How important are tax incentives for SEZs?
2 minutos Most people consider tax incentives a fundamental competence of a special economic zone (SEZ) programme. Without them, is an SEZ even an SEZ? But research indicates tax incentives may not help SEZs much and can even harm the economy. Tax incentives come in two types: “income-based”, which reward companies’ profit, and “cost-based”, which reward their activities or investments. SEZs, especially in developing countries, have typically relied heavily on income-based incentives by granting generously reduced corporate tax rates or tax holidays. This aims to lower Continue lendo→