ROLE OF TAXATION IN FOREIGN INVESTIMENT 2
Role of Taxation in Foreign Investment
Taxes imposed by governments are directly responsible the levels of foreign
investments witnessed in a country. Foreign Direct Investment (FDI) must be promoted
sustainably with good policies taxation in order to have a proper economic growth. It is a
very complicated task to strike a fair deal that will ensure that the government collects a good
amount from the large companies within its jurisdiction, at the same time being friendly.
From the research that has been conducted from the past, it is known world-wide that a
country has never developed significantly by conducting trade with itself. External investors
combined with a booming industrial culture sets the pace of a country moving. Therefore,
countries are left in the crossroads of stiff competition of providing the fairest policies that
can favour as most investors as possible. (Chow, Hoopes & Maydew, 2017).
Investment from external parties is not a matter conclusively affected by the corporate
income taxes alone, rather many factors like existence of a strong market with a high
purchasing power will prove very needful. For this particular research, I intend to collect
information concerning the levels to which taxation impacts the FDI. The major resources to
provide information needed are the banks, the ministries handling industries, trade and the
national treasury. Business practitioners and consultant swill prove handy in this by sharing
their conception of the subject matter. To mine information from these institutions, I will seek
to book appointments with the personnel working in the institutions. (Kugler, 2018).
Ethical issues in the research
From the research that is going to take place, I purpose to present the data and information
without the least fabrication and misrepresentation of facts. Information that needs utmost
privacy will be kept confidential and away from the public. Mutual respect will be the game