Business Taxation

Investors identify the tax system as one of the most important parameters in making an investment decision. Cumbersome tax structures are a drain on investor time and resources and act as a disincentive to participation in the formal economy. A badly designed and/or executed tax system negatively impacts investment economic growth suffers. Traditional technical assistance has focused on the implementation of revenue-generating mechanisms, while largely neglecting the impact of the tax system on investment and economic growth. FIAS helps to improve the business-enabling environment by reducing the time and financial cost that firms incur in complying with tax rules.

FIAS' Business Taxation team provides specialized advice aimed at promoting effective, fair and inclusive tax systems that foster investment, economic growth and political stability in developing countries.

Benefits to streamlining tax systems are considerable, including:

• increasing the number of firms into the formal economy;
• encouraging local and foreign direct investment (FDI);
• widening the tax base;
• lowering the per-business costs of tax compliance.