Page 2 - Working Paper (Tax Incentives: An Alternative to Revenue Enhancement)
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Tax Incentives:

                                              An Alternative to Revenue Enhancement

                   Adri A. L. Poesoro*        1

                   The increasing mobility  of international                  TABLE OF CONTENTS
                   firms  and  the  gradual  elimination
                   of  barriers  to  global  capital  flows
                   have stimulated competition  among
                   governments, often through tax incentives.                1.  Introduction ............  3
                   Tax incentive is a strategy to complement
                   other government tools to attract foreign
                                                                             2.  Tax Incentives
                                                                                in Developing
                                                                                Economies ...............  4
                   This  paper starts with exploring the
                   rationale behind providing tax incentives
                   and empirical evidence  across  countries.                3.  Types of Tax
                                                                                Incentives ................  5
                   The  paper also comparing of pros  and
                   cons  for  each tool of  tax incentive. The
                                                                             4.  Economic Analysis
                   analysis  will  focus on the economics  of
                                                                                of Tax Incentives .....  7
                   tax  incentives  and then followed  by the
                   Indonesia’s experience with  applying
                                                                             5.  Indonesia’s
                   these strategies.
                                                                                Experience with Tax
                                                                                Incentives ................  8
                   In the last section, this paper will conclude
                   and    propose     recommendation       for
                   Indonesia to enhance the state revenue.                   6.   Conclusion and
                                                                                Recommendation .... 10

                   *Adri A. L. Poesoro is a Chief Economist, DANNY DARUSSALAM Tax
                   Center and a Doctoral graduate from Claremont Graduate University,


                   The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or
                   entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate
                   as of the date received or that it will continue to be accurate in the future. The author’s views expressed in this Working Paper do not
                   necessarily reflect of the views of DANNY DARUSSLAM Tax Center. Working Papers describe research in progress by the authors and are
                   published to elicit comments and to further debate.
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