This policy brief explores the implications of the 15% global minimum tax on special economic zones, offering comprehensive guidance for governments to reform tax incentives and ensure these zones attract high-quality, sustainable investments. It emphasizes the need for a comprehensive approach that includes both fiscal and non-fiscal incentives, considering infrastructure, skilled labour, and regulatory efficiency.
Authors
Joy Waruguru Ndubai-Ngigi, Alexandra Readhead, Suzy H. Nikièma
- Pages
- 24
- Published in
- Canada
- Rights
- IISD, 2024
Table of Contents
- Table 1. How common SEZ tax incentives may be impacted by GloBE 14
- Table 2. ISDS cases relating to the revocation of SEZ benefits 17
- Box 1. Shanghai FTZ 8
- Box 2. SEZ Adoption in Zambia 9
- 1.0 Introduction 5
- 2.0 Understanding SEZs 7
- 3.0 Design and Use of Tax Incentives in SEZs 11
- 3.1 Type of Tax Incentives Used in SEZs 11
- 3.2 Effectiveness of Corporate Tax Incentives in SEZs 11
- 4.0 International Tax Reforms and SEZs 13
- 4.1 The Global Minimum Tax 13
- 4.2 The Forum on Harmful Tax Practices 14
- 5.0 Legal Considerations for Reforming Tax Incentives in SEZs 16
- 5.1 Maintaining a Predictable Investment Environment 16
- 5.2 Mitigating Potential Legal Risks 16
- 6.0 The Future of SEZ Design 19
- 7.0 Conclusion and Recommendations 21
- References 22
