Tax Incentives in Special Economic Zones: Comparing ASEAN Approaches and Justice Implications

Tiur Marbun Sondang (Universitas Jember)
Isabella Miriam Putri (University of Mindanao)

Indonesian Tax Justice Review
Vol. 2 No. 3 (2025): August, 2025

Special Economic Zones (SEZs) are widely used across Southeast Asia to attract investment through preferential tax treatment. This paper compares SEZ tax incentive regimes in Indonesia, Vietnam, Cambodia, and the Philippines to evaluate their implications for tax justice. Using comparative policy analysis, the study assesses transparency, cost-effectiveness, and distributive impacts. The findings suggest that while SEZ incentives may attract investment, they often result in significant revenue losses and uneven development outcomes. The paper argues that SEZ-based tax incentives risk undermining horizontal equity by favoring firms within zones over domestic enterprises outside them. The global contribution of this study lies in advancing understanding of how geographically targeted tax incentives affect justice and development in emerging economies. The ASEAN experience offers broader lessons for designing investment policies that balance competitiveness with equitable taxation.