The foreign direct investor may acquire 10% or more of the voting power of an enterprise in an economy through any of the following methods:
- by incorporating a wholly owned subsidiary or company
- by acquiring shares in an associated enterprise
- through a merger or an acquisition of an unrelated enterprise
- participating in an equity joint venture with another investor or enterprise
Foreign direct investment incentives may take the following forms:[citation needed]
- low corporate tax and income tax rates
- tax holidays
- other types of tax concessions
- preferential tariffs
- special economic zones
- investment financial subsidies
- soft loan or loan guararntees
- free land or land subsidies
- relocation & expatriation subsidies
- job training & employment subsidies
- infrastructure subsidies
- R&D support
- derogation from regulations (usually for very large projects)
No comments:
Post a Comment