200Policy Brief - OECD

OECD 2008 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Policy BriefFEBRUARY 2008 Tax Effects on Foreign Direct InvestmentIntroductionVirtually all governments are keen to attract foreign direct investment (FDI). It can generate new jobs, bring in new technologies and, more generally, promote growth and employment. The resulting net increase in domestic income is shared with government through taxation of wages and profits of foreign-owned companies, and possibly other taxes on business ( property tax). FDI may also positively affect domestic income through spillover effects such as the introduction of new technologies and the enhancement of human capital (skills).

© oecd 2008 organisation for economic co-operation and development

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