Preface 3

Foreword 4

Reader’s guide 7

Executive summary 8

1 Conception 11

1.1. Determine the need for policy intervention 13

1.2. Assess potential costs and benefits, and define clear policy objectives 14

1.3. Establish procedures and governance mechanisms 19

References 22

Notes 28

2 Design 33

2.1. Support effectiveness and efficiency of tax incentive design 34

2.2. Design elements to maximise results while limiting costs 36

References 41

Notes 45

3 Implementation 47

3.1. Establish clear granting procedures, ideally based on self-assessment 48

3.2. Provide simple and predictable process to receive incentives 51

3.3. Enhance transparency of investment incentives 52

References 53

Notes 55

4 Monitoring 57

4.1. Determine what to monitor 58

4.2. Establish monitoring processes 61

4.3. Build capacity for data collection 63

References 63

Notes 66

5 Evaluation 67

5.1. Establish aims and governance of evaluations 68

5.2. Determine most appropriate and feasible approach 71

5.3. Report on findings of analysis 74

5.4. Consider and prepare for reform 74

References 76

Notes 80