INTERNATIONAL PRACTICE: TAX INCENTIVES FOR INVESTMENT

Abstract

International practices in the application of tax incentives to stimulate investment activity are examined. The main types of investment tax incentives are considered, including income-based and expenditure-based measures, along with their sectoral, territorial, and performance-oriented characteristics. Particular attention is paid to OECD approaches to assessing the effectiveness, fiscal cost, targeting, and impact of tax incentives on investment decisions. The advantages and risks associated with corporate income tax exemptions, reduced tax rates, accelerated depreciation, enhanced tax allowances, and tax credits are analyzed. The need to enhance the transparency, time-bound nature, and effectiveness of tax incentives, as well as to link them more closely to actual investment outcomes and sustainable development objectives, is substantiated.