Lower, Middle-Income Countries Turn to Tax Perks Over Hikes

Lower- and middle-income countries in 2024 turned to targeted investment incentives and away from raising broad corporate tax rates, according to an OECD report.

Many of these countries expanded or created business income tax investment regimes to encourage investment in certain regions or specific sectors of the economy, the Organization for Economic Cooperation and Development said in its report Tuesday.

Mexico, for example, offered an immediate 100% deduction for investments made in industrial zones to bolster development in strategic regions, the OECD said.

Peru, Mauritius, and Montenegro were among others the OECD noted for offering ...