This paper provides an updated overview of tax incentives for business investment. It begins by noting that tax competition is likely to be a major force driving countries' tax reforms, and discusses tax incentives as a possible response to this. This is complemented by other arguments for and...

This paper considers two empirical questions about tax incentives: (1) are incentives used as tools of tax competition and (2) how effective are incentives in attracting investment? To answer these, we prepared a new dataset of tax incentives in over 40 Latin American, Caribbean and African...

Intro -- Contents -- I. INTRODUCTION -- II. ACE TAX SYSTEMS -- III. ACE SYSTEMS IN PRACTICE -- IV. PREVIOUS ANALYSES OF ACE TAX SYSTEMS -- V. THE BRAZILIAN ACE VARIANT -- VI. CONCLUSION -- Appendix I. Effective Tax Rates -- REFERENCES.