Dear Sir or Madam, 

UNCTAD has launched its annual World Investment Report 2015. The theme 
chapter on international tax and investment policies: 

        Estimates the fiscal contribution of multinational enterprises 
(MNEs) in developing countries at some $730 billion annually. 
        Explains how patterns of investment are often influenced by tax, 
with about 30% of global investment routed through offshore investment 
hubs before reaching its destination as productive assets. 
        Shows how an additional 10% of investment routed through offshore 
hubs is associated with a 1 percentage point lower reported (taxable) rate 
of return on investment. 
        Calculates tax revenue losses for developing countries associated 
with offshore investment links at about $100 billion. 
The chapter stresses the joint policy imperative to take action against 
tax avoidance to support domestic resource mobilization and to continue to 
facilitate productive investment for sustainable development. It provides 
an investment perspective on international tax avoidance, leading to new 
insights on the links between investment and tax policies and resulting in 
a set of guiding principles for Coherent International Tax and Investment 

Synergistic international tax and investment policymaking should aim to: 

        Remove aggressive tax planning opportunities as investment 
promotion levers. 
        Consider the potential impact on investment of anti-avoidance 
        Take a partnership approach to tackling tax avoidance in 
recognition of shared responsibilities between host, home and conduit 
        Manage the interaction between international investment and tax 
        Strengthen the role of both investment and fiscal revenues in 
sustainable development. 
A further key recommendation of the Report is to enhance capacities in 
developing countries for the promotion and facilitation of investment and 
for addressing international tax avoidance issues. As such it connects 
directly with the work of the G20 Development Working Group on Domestic 
Resource Mobilization and its Call to Action for Strengthening Tax 
Capacity in Developing Countries. In its future deliberations the DWG may 
wish to consider the close links between international tax and investment 
With kind regards, 

James Zhan
Director, Investment and Enterprise
Team leader, World Investment Report
Palais des Nations, Geneva
Tel: +41 22 917 5797 (World Investment Reports)

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