Review article
https://doi.org/10.31784/zvr.10.1.17
MATURITY OF TAX INCENTIVES AS A FACTOR OF DIVESTMENT OF FOREIGN ENTERPRISES
Jože Perić
; University of Rijeka, Faculty of Tourism and Hospitality Management, Opatija, Croatia
Maja Nikšić Radić
orcid.org/0000-0002-8871-6833
; University of Rijeka, Faculty of Tourism and Hospitality Management, Opatija, Croatia
Abstract
Foreign direct investment and foreign divestment are two sides of the same coin, one studied and researched in detail, the other surprisingly neglected. Today, in the global market, there is a strong struggle of each individual country to attract as much of the cake of foreign capital within its borders. One of the measures that is trying to attract a foreign investor is tax incentives. However, the success of this measure is questionable because very often after its expiration, a foreign investor leaves the country. The main goal of this paper is to point out the issue of tax incentives as one of the ways to attract foreign direct investment, provide a detailed insight into the current understanding of the concept of divestment and analyse the relationship between tax incentives and divestment on the example of the Republic of Croatia. The conducted analysis pointed to the fact that on the example of the Republic of Croatia there is a clear connection between the maturity of tax incentives and divestments. The average age of foreign companies in the Republic of Croatia is 9.2 years, which corresponds to a ten-year period of tax support
Keywords
foreign divestment; foreign direct investment; tax incentives
Hrčak ID:
277789
URI
Publication date:
20.5.2022.
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