Wednesday was a taxing day for developing economies hoping to attract investment from the United Kingdom and grow domestic resources.
Parliament approved a tax treaty Wednesday with Senegal that will allow U.K. companies to pay a fraction of the developing country’s standard tax rate. The goal of the treaty is to promote foreign direct investment between the two countries, which currently exchange less than $3 million in annual investments.
According to the International Monetary Fund, such treaties have “mixed” results, and whether they actually increase investment over the long-term remains difficult to measure.
Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).