The Global Minimum Tax and Special Economic Zones

Table of Contents

• Table 1. How common SEZ tax incentives may be impacted by GloBE 14
• Table 2. ISDS cases relating to the revocation of SEZ benefits 17
• Box 1. Shanghai FTZ 8
• Box 2. SEZ Adoption in Zambia 9
• 1.0 Introduction 5
• 2.0 Understanding SEZs 7
• 3.0 Design and Use of Tax Incentives in SEZs 11
• 3.1 Type of Tax Incentives Used in SEZs 11
• 3.2 Effectiveness of Corporate Tax Incentives in SEZs 11
• 4.0 International Tax Reforms and SEZs 13
• 4.1 The Global Minimum Tax 13
• 4.2 The Forum on Harmful Tax Practices 14
• 5.0 Legal Considerations for Reforming Tax Incentives in SEZs 16
• 5.1 Maintaining a Predictable Investment Environment 16
• 5.2 Mitigating Potential Legal Risks 16
• 6.0 The Future of SEZ Design 19
• 7.0 Conclusion and Recommendations 21
• References 22