TAX INCENTIVES FOR FOREIGN DIRECT INVESTMENT: CASE STUDY OF GHANAIANS PERCEPTION

Multinational enterprises tax incentives lower Governments' corporate and other income tax revenue and affect the fiscal policies (taxes and government expenditure) which result to excessive borrowing on consumption. The researcher is assessing the tax incentives impact on tax planning purposes, also to examining and measures it developmental effect on the economy. Ghana tax incentives such as tax holidays, capital investment incentives; reduced tax rates incentives, Special Economic Zones and many more. The possible research question is “does tax incentives to foreign direct investment attract the needed development for a country and why Ghana has not gotten the necessary needed development?” and to organise any other possible influence factors that FDI may consider in decision making, review the existing literature on tax policy on Foreign Direct Investment (FDI), and commend critical areas where ta x incentives should be strengthened and the best tax incentive practice.. The study will scale free zone companies in Ghana and their in foreign economic activity impact to the economy of Ghana. United Nations Conference on Trade and Development's report said the rate of return was lower due to profit shifting.