The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)
Table 2 Current state of FDI policies
From: Liberalization and FDI Performance: Evidence from ASEAN and SAFTA Member Countries
FDI policy aspects | Countries | ||||||
|---|---|---|---|---|---|---|---|
Bangladesh | Pakistan | India | Indonesia | Thailand | Philippines | Vietnam | |
Tax holiday | (i) 5–7 years in most sectors; (ii) 15 years in power sector; (iii) 10 years (in EPZ) | Tax cut (50% of plant, machinery, and equipment cost) | (i) 10 years in the power sector; (ii) 5 years in infrastructure sector | n/a | 8 years (in priorities activities) | 3∼8 years | 2∼8 years |
Corporate tax rate | 25% | 35%∼25% | 40∼42% (higher than local investors) | 25% | 30% | 30% | 25∼10% |
Ceiling on equity holding | No ceiling | No ceiling (in manufacturing sector); 60% (in service and agriculture) | Ceiling on few sectors | 45–95% (ceiling on 17 sectors) | No ceiling (in manufacturing sector); 49% (maximum in some specified sectors) | 20% (5 sectors), 30% (one sector), 40% (19 sectors) | No ceiling |
Number of restricted sectors | 4 | 4 | 2 | 25 | n/a | 11 | 12 |
Repatriation provisions | Full repatriation of capital, profits, and dividends | Full repatriation from manufacturing; 60% from service sector | Repatriation of profit after tax without any restriction | Full repatriation | Free to repatriate investment funds, profits, and dividends and to repay overseas loans | Free to repatriate investment, earnings, and funds for loan payment | Full repatriation |
Number of BITs (until 01 June 2012) | 29 | 46 | 83 | 63 | 39 | 35 | 60 |