Bridging the Gap Between Tax and Investment Communities: Understanding tax incentives in investment laws

Tax incentives are a central feature of national investment laws across emerging markets and developing economies (EMDEs), yet how they are designed, governed, and monitored remains poorly understood. When poorly managed, they can generate substantial revenue losses and fall short of their intended investment outcomes.

A core part of the challenge is coordination. Investment promotion agencies and ministries of finance often operate under different mandates, creating gaps in the design, approval, and oversight of these incentives. This raises critical questions: how can fiscal oversight be ensured when incentives sit outside traditional tax policy processes? And how can investment and tax authorities better align their approaches?

This webinar continues the conversation initiated at the 2024 Investment Policy Forum, where closer engagement between tax and investment policy-makers emerged as a key priority. It forms part of IISD's broader effort to convene both communities around shared challenges and support more coherent approaches to attracting sustainable investment while safeguarding domestic resource mobilization.

During the event, our experts presented findings from IISD's newest report, Tax Incentives in Investment Laws, mapping the prevalence, design, and governance of tax incentives across 105 investment laws in EMDEs. The session then opened the floor to shared dialogue, exploring how governments can better align investment and tax policy and identify opportunities for continued collaboration.

Speakers

• Alexandra Readhead, Director, Tax and Debt, IISD (moderator)
• Suzy Nikièma, Director, Investment Law and Policy, IISD (moderator)
• Naa Lamle Orleans-Lindsay, Director, Legal Division, Ghana Investment Promotion Centre, Ghana
• Prudens Rweyongeza, Director of Legal Services, President's Office, Planning and Investment, Tanzania
• Eduardo José Sotelo Castañeda, Advisor, General Directorate of Public Revenue Policy, Ministry of Economy and Finance, Peru
• David O'Sullivan, Senior Economist, Global Tax Program, World Bank
• Josefina del Rosario Lago, Policy Analyst, Tax and Investment, IISD