A provision where a country applies a tax credit against taxes owed on foreign income that is equivalent to the tax exemption provided by the foreign country. Tax sparing policies are especially important to developing countries in their effort to attract investment.
Related information about tax sparing:
- "Tax Sparing" and Direct Investment in Developing Countries
Most high-income capital-exporting countries grant "tax sparing" for FDI in developing countries, while the United States does not. Comparisons of Japanese ...
- “Tax Sparing: A Needed Incentive for Foreign Investment in Low
Jan 21, 2010 ... A tax sparing provision, included in a tax treaty negotiated between the two ... * 506 The author outlines the history of tax sparing provisions in ...
- Foreign tax credit - Wikipedia, the free encyclopedia
Some variations on the credit provide for a credit for hypothetical tax to encourage foreign investment (sometimes known as tax sparing). Detailed rules vary ...
- TAX SPARING A Reconsideration As the new global environment ...
policies that underlie their taxation arrangements, tax sparing practices are coming ... A new study on tax sparing -- which is a tax treaty provision whereby a ...
- Why enter a tax sparing agreement?
Oct 12, 2011 ... Tax sparing grants a domestic tax credit to a transnational company for taxes ... We investigate the rationale behind tax sparing agreements.
- What is tax sparing? definition and meaning
Definition of tax sparing: A provision where a country applies a tax credit against ... Tax sparing policies are especially important to developing countries in their ...
- Tax Sparing: A Needed Incentive for Foreign Investment in Low ...
Jul 15, 2009 ... Low income countries often offer tax incentives to induce foreign investment, but the effectiveness of these measures may he limited by the ...
- Giving back with tax sparing
Jul 9, 2010 ... Less obvious, because it is less understood, is Canada's indirect foreign aid through international tax treaties through tax sparing. Tax sparing ...