When offered and appropriate, we use tax incentives and exemptions where we have a qualifying business activity.
Governments use incentives to compete for international investment to aid their country’s social and economic development. They may develop specific tax laws which offer incentives to businesses if they invest in the country or in a particular location within the country.
Incentives can include tax relief for capital expenditure on infrastructure, exemptions from certain taxes where employment targets are met, or a particular tax treatment of costs related to research and development activities.
Applying these laws can result in reduced corporate income taxes. However, other taxes, such as property taxes, taxes on goods and services and employment taxes, may increase. This is because governments expect a net economic benefit after they have granted these incentives.