The most commonly used types of non-tax incentives by OECD countries primarily include financial incentives, regulatory incentives, and in-kind benefits, with clear differences in their prevalence:
- Financial Incentives: These are the dominant form of non-tax incentives used across OECD jurisdictions, offered in about 86% of countries. Examples include grants, subsidies, and loans provided to investors or businesses to encourage investment and economic activity.
- Regulatory Incentives: These are less widespread but still notable, available in roughly half of OECD countries. Regulatory incentives might involve easing regulatory requirements, faster administrative procedures, or other regulatory facilitation measures to attract investments.
- In-kind Benefits: These are provided by fewer than one-third of OECD countries. In-kind benefits can include provision of infrastructure, land, or other tangible support to investors as part of the incentive package.
In summary, OECD countries most commonly use financial assistance such as grants, subsidies, and loans as their primary non-tax incentive, supplemented by regulatory facilitations and in-kind support in fewer cases. This reflects a strategy focused on direct financial support combined with some regulatory ease and infrastructure assistance to promote investment and economic growth.
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