Over the years, low corporate tax rates have been utilized as an attractive incentive for foreign direct investment (FDI) in many Caribbean countries. These tax havens have become popular destinations for multinational corporations seeking to optimize their financial structures and reduce their overall tax burden. However, the global shift towards fair and transparent taxation has put these strategies under significant pressure, raising concerns about the future of FDI in the Caribbean region. In this article, we will explore the relationship between corporate tax rates and FDI, focusing on Caribbean countries, and examine the potential impact of changes in global taxation policies on these small states.

