Tax incentives and investment in the Eastern Caribbean

  • 27 Pages
  • 2.35 MB
  • 8042 Downloads
  • English
by
International Monetary Fund, Western Hemisphere Dept. , [Washington, D.C.]
Investment tax credit -- Caribbean Area., Capital investments -- Caribbean
Statementprepared by Sebastian Sosa.
SeriesIMF working paper -- WP/06/23
ContributionsInternational Monetary Fund. Western Hemisphere Dept.
The Physical Object
Pagination27 p. ;
ID Numbers
Open LibraryOL19573476M

Tax incentives have been used extensively in the countries of the Eastern Caribbean Currency Union (ECCU) to promote investment. The associated revenue losses are large, and benefits in terms of. Tax incentives have been used extensively in the countries of the Eastern Caribbean Currency Union (ECCU) to promote investment.

The associated revenue losses are large, and benefits in terms of new investment have been limited, raising doubts about the cost effectiveness of the tax incentive schemes. Tax incentives have been used extensively in the countries of the Eastern Caribbean Currency Union (ECCU) to promote investment.

The associated revenue losses are large, and benefits in terms of new investment have been limited, raising doubts about the cost effectiveness of the tax incentive schemes. This paper examines the effects of incentives. Downloadable. Tax incentives have been used extensively in the countries of the Eastern Caribbean Currency Union (ECCU) to promote investment.

The associated revenue losses are large, and benefits in terms of new investment have been limited, raising doubts about the cost effectiveness of the tax incentive schemes. This paper examines the effects of incentives using the marginal effective tax.

Organization of Eastern Caribbean Countries 12 The Effectiveness of Tax incentives for Tourism Investment in the Caribbean. FDI inflows into the Caribbean 13 0 10 20 30 40 50 60 Typology of FDI and response to Tax Incentives 20 Type of Investment Factors that drive it Response to investment incentives Natural Resource/Skill.

Downloadable. We investigate to what extend tax incentives have been effective in attracting Foreign Direct Investment in the tourism sector in the Caribbean in the period More precisely, we test whether the neoclassical investment theory prediction that tax incentives, by lowering the user cost of capital, raise investment, holds in the Eastern Caribbean Currency Union (ECCU).

Tax concessions have been employed as a central component of the development strategy in the small island states comprising the Eastern Caribbean Currency Union. This paper compares the costs of concessions in terms of revenues forgone with the benefits in terms of increased foreign direct investment.

UNCTAD (), "Tax incentives and foreign direct investment, a global survey", ASIT advisory studies No 16, UN, New York and Geneva. Van Parys, S., James, S. (), "The effectiveness of tax incentives in attracting investment: panel data evidence from the CFA Franc zone", International Tax and Public Finance, 17(4), pp 2.

Description Tax incentives and investment in the Eastern Caribbean PDF

Provide tax incentives for investment through tax laws only. Tax incentives for investment are currently provided through tax laws (e.g., income tax law), but in many cases are also provided by laws governing investment, Special Economic Zones, etc.

and. Page 1 of 5 International Tax Antigua & Barbuda Highlights Updated January Investment basics: Currency – East Caribbean Dollar (XCD) Foreign exchange control – The monetary authority is the Eastern Caribbean Central Bank.

There are no limits on foreign exchange transactions. finances. For example, an assessment of the Eastern Caribbean Currency Union from to found that tax incentives had limited effect on FDI, though they significantly aggravated fiscal deficits and debt overhangs (Chai and Goyal ; James and Van Parys ).

The success of incentives in attracting FDI depends. A Typology of tax Incentives in the Caribbean.

Details Tax incentives and investment in the Eastern Caribbean EPUB

Tax holidays are widely used throughout the world. Table indicates that tax holidays are commonplace in South Asia, Eastern Europe and Central Asia, and the East Asia Pacific countries, but less so in Organisation for Economic Co-operation and Development countries.

This reflects the gradual shift away from the use of tax holidays over time in. Keywords: Concessions, Incentives, Tax Competition, Foreign Direct Investment, ECCU Authors’ E-Mail Addresses: [email protected], [email protected] 1 We are grateful to the country authorities in the Eastern Caribbean Currency Union and the staff of the Eastern Caribbean Central Bank for providing data and useful comments.

T ax incentives and investment in the Eastern Caribbean,IMF WP Series 05 [32]. Toward, Earth Summit (2 ).FDI: A lead dri ver for sustainable developm ent, Economic Briefing Series No. Generous incentive packages include corporate tax incentives, full exemption from import duties, tax relief benefits, and export allowance; Dominica’s currency, the East Caribbean dollar (XCD), is pegged to the US dollar (USD) at a fixed rate; Duty-free access to several markets across the Caribbean.

Empirical evidence on the effects of tax incentives. Alexander Klemm and Stefan van Parys. Year of publication. With member countries, staff from more than countries, and offices in over locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.

International Tax Antigua & Barbuda Highlights Updated January Investment basics: Currency – East Caribbean Dollar (XCD). Foreign exchange control – The monetary authority is the Eastern Caribbean Central Bank. There are no limits on foreign exchange transactions. Accounting principles/financial statements –.

Van Parys and James (), in their paper entitled "The Effectiveness of Tax Incentives in Attracting FDI: Evidence from the Tourism Sector in the Caribbean", tested whether the neoclassical investment theory prediction according to which tax incentives raise investment by lowering the user cost of capital, holds in the Eastern Caribbean.

Visa-Free Travel; Several Caribbean islands are implementing the most affordable citizenship by investment programs in the world, where applicants from anywhere in the world can obtain the Commonwealth citizenship either through the financial contribution into the country’s economy or through investing in its real estate market, holding one.

Incentives and Investments - Version pdf: Tax Incentives and Investment - The role of Investment Climate wp_10_pdf: Tax Incentives and Investment in Export industry in : Tax Policy for SEZs - A : Tourism Tax Incentives and Investment in the Eastern Caribbean wp_10_pdf.

The investment tax incentive portion of the package was left out of the legislation's final version. Also, a number of products were excluded from the eligibility list of duty-free exports. Exports from Central America, the Central Caribbean, and the Eastern Caribbean increased by, and percent, respectively.

All of the oil. The Eastern Caribbean dollar has been pegged to the United States dollar at a rate of XCD to USD USD since As a result, the Eastern Caribbean dollar does not fluctuate, creating a stable currency environment for trade and investment in Antigua and Barbuda.

Remittance Policies. VIENNA, Austria, Octo —Reducing risk in developing countries is key to spurring investment and growth. A new report and investor survey published today by the World Bank Group concludes that, on balance, foreign direct investment (FDI) benefits developing countries, bringing in technical know-how, enhancing work force skills, increasing productivity, generating business for.

The country is home to the ECCB, the Eastern Caribbean Securities Exchange (ECSE), and the Eastern Caribbean Securities Regulatory Commission (ECSRC).

Through the St. Kitts Investment Promotion Agency (SKIPA), the government introduced a number of investment incentives for businesses that consider locating in St. Kitts and Nevis. This result is broadly confirmed in a third study that focuses on the effectiveness of tax incentives in two monetary unions: the Eastern Caribbean Currency Union and the African CFA Franc zone.

Moreover the third study indicates that reduced complexity of the tax system and more legal guarantees help to attract investment in the CFA Franc zone.

Download Tax incentives and investment in the Eastern Caribbean PDF

Alternatively, a company can register as a local company and benefit from incentives under the Fiscal Incentives Act. The Government of Dominica offers a very generous fiscal incentive package for investment in this area.

Tax holiday up to 20 years; % profit repatriation; Import duty exemptions; Exemption of Value Added Tax (VAT) on capital. Key Incentives Here is some of the key tax and other incentives offered under the International Business Companies Act, Cap.

n Tax on income on a sliding scale, from a maximum of % to a minimum of 1%. n A tax credit in respect of taxes paid outside of Barbados, but only insofar as it reduces the tax payable in Barbados to a minimum of 1%.

Eastern Caribbean Dollars (XCD) using average market rate. 3 Author calculations. US dollars using average market rate.

4 Author calculations. International dollar purchasing power parity (PPP) 5. 6 Mid-point of grade 4. 7 End of grade 6. 8 Scale point 9,10 Scale point Starting salary on grade 9. 12 mid-point of grade   4.

Regional coordination of selected revenue policies could create fiscal space for ECCU’s public investment. The ongoing “race to the bottom” in competing for tax incentives and CBI programme conditions limits the potential to raise revenue that could be channelled to productive spending, including resilience building.

Visit the post for more. Shopping. Ranked #1 for visitor spend per trip among the top regional destinations, Barbados has one of the most diverse shopping experiences in the Eastern Caribbean with a wide selection of international brands available on the island, and a blossoming local market that is quickly making its presence felt internationally.

The island is also Ranked #2 for the number.those three have been joined by additional tax guides on more-specific topics, including the Worldwide Estate and Inheritance Tax Guide, the Worldwide Transfer Pricing Reference Guide, the Global Oil and Gas Tax Guide, the Worldwide R&D Incentives Reference Guide, the Worldwide Digital Tax Guide and the World­ wide Capital and Fixed Assets Guide.Get this from a library!

Tax Concessions and Foreign Direct Investment in the Eastern Caribbean Currency Union. [Rishi Goyal; Jingqing Chai; International Monetary Fund.] -- Many developing economies are heavily exposed to commodity markets, leaving them vulnerable to the vagaries of international commodity prices.

This paper examines the use of commodity.