Tax incentives for FDI enterprises: The current situation in developing countries and Suggestions for Vietnam

Abstract

Investment promotion agencies in developing countries are currently under pressure to offer
incentives to race in the global battle to attract FDI. This article focuses on theoretical and practical issues
related to incentives for corporate income tax (CIT), one of the taxes has an important influence and affects
all types of FDI. By synthesizing, comparing and analyzing data, the article provides general theories on CIT
incentives and provides an overview of the current status of applying tax incentives in developing countries.
Finally, based on the current situation in Vietnam, the article proposes recommendations to reform tax
incentives in a more efficient way