tax sparing


A provision where a country applies a tax credit against taxes owed on foreign income that is equivalent to the tax exemption provided by the foreign country. Tax sparing policies are especially important to developing countries in their effort to attract investment.

Use tax sparing in a sentence

You may want to read up on tax sparing and see if there is any way you can take advantage of it when implemented.

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The tax sparing tool was useful for us as we were heavily involved in foreign transactions and had been accruing tax liabilities.

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Nigeria has implemented the incentive of tax sparing to encourage foreign business to invest in their country and hopefully boost their economy.

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