Home Country (Country A): Effective Tax Rate of 35%
Foreign Country (Country B): Effective Tax Rate of 10%
The company's operations grossed $100,000,000 (Home currency) in income (before taxes) while operating abroad in Country B. Based on the tax rates, the company would pay $10,000,000 to Country B for taxes. From there, that $10,000,000 is normally deducted from Country A's tax rate to avoid double taxing the income, so what would have been $35,000,000 becomes only $25,000,000 taken in by Country A.
The Tax holidays in the Goldman article are playing off the above. In a tax holiday, Country A would not receive any tax revenue from foreign operations under the hope that the company would then reinvest that $25,000,000 as capital within Country A. While that works once in awhile, there is no way to guarantee where those funds will wind up. In the meantime, Country A has $25,000,000 less in tax revenue (not accounting for any taxation on funds that somehow make it back and incur charges either from Employee Income Tax, Capital Gains Tax for investors, or possible Sales Tax).