The transformative changes taking place in the global system of international taxation will affect the ability of countries to attract investment for sustainable development. In particular, the imminent introduction of a global minimum tax for large multinationals will have major implications for investment policies and typical investment promotion instruments such as fiscal incentives and special economic zones.
This high-level event will discuss the implications of the international tax reforms for investment policy, with a particular focus on developing countries. The event will bring together senior policymakers and global experts from both the investment and the tax policy domains, to advance constructive dialogue between the two communities for the benefit of sustainable development. The main objective is to identify options to optimize countries’ investment policy response to the tax reforms and to alleviate the constraints that may place developing countries, and especially LDCs, at a disadvantage in this challenging transition.
- What is the status of the tax reforms (in particular G20/OECD BEPS Pillar II), and what will this imply for the international investment landscape over the next two years?
- How, in the new tax environment, will countries, especially developing countries, compete for investment? What will be the broader impact on their industrial and development policies?
- What will be the impact of the tax reforms on sustainable development financing, both in terms of domestic revenue mobilization and in terms of financing through FDI? What other measures can be proposed to continue FDI attraction?
- How will MNEs react to limitations in the use of tax incentives? How will the investment strategies and value propositions of IPAs and SEZs be affected by a 15% minimum tax?