Optimal research and development expenditures under an incremental tax incentive scheme

AbstrakThis article elaborates on tax incentive for research and development area.In recent government policy of the Republic Indonesia has governed underthe Government Regulation number 35 year 2007. The author deems thatthat regulation has some fundamentals weakness. The policy toward taxincentive commonly should make corporation can save in huge amount. Thataspect is also contained disadvantage to be abused. Hence abuse throughduty free privilege could happen like on imported goods selling which isimported by that privilege abuse in domestic market. Under the author sightsthen government ought to launch any exclusive policy for certain companythat has significant program to conducting research and development. Thenthe author advises to protect that policy also must be secured by worthysystem of incentive's application will be approved to the right one only

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Designing a Tax Incentive Scheme: The Case of a Wage Tip

Journal of Policy Analysis and Management ◽

10.2307/3323751 ◽

1985 ◽

Vol 4 (4) ◽

pp. 501 ◽

Cited By ~ 1

Author(s):

Geoffrey Carliner ◽

Michael J. McKee

Keyword(s):

Incentive Scheme ◽

Tax Incentive

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Analysis of the Participation of Micro, Small, and Medium Enterprises (MSMEs) Taxpayers in Utilizing Tax Incentives Affected by the COVID-19 Pandemic

TIJAB (The International Journal of Applied Business) ◽

10.20473/tijab.v5.i1.2021.71-80 ◽

2021 ◽

Vol 5 (1) ◽

pp. 71

Author(s):

Imam Agus Faisol ◽

Tito IM. Rahman Hakim

Keyword(s):

Small And Medium Enterprises ◽

Financial Burden ◽

Value Added ◽

Tax Incentives ◽

Incentive Scheme ◽

Tax Incentive ◽

Medium Enterprise ◽

The Government ◽

Medium Enterprises ◽

Depth Interviews

This study aims to assess the effectiveness of the COVID-19 tax incentives that the government has issued. It focused on Micro, Small, and Medium Enterprises (MSMEs) taxpayers to participate in COVID-19 tax incentives. Using a qualitative method, this study used in-depth interviews with 2 informants who were a tax consultant and a small-medium enterprise accountant. The findings show that the effectiveness of the COVID-19 tax incentive is still lacking, and it is in line with the participation of MSMEs that is still low in utilizing tax incentives. The low participation of MSMEs in utilizing tax incentives can be seen from the data, which shows that after 5 months of running the program, out of around 2.3 million MSMEs, only 200,000 have taken advantage of this facility. The tax consultant states that the scheme that has been implemented in mitigating the financial burden of MSMEs is not effective for the object of incentives in not substantial. The informant suggests incentives to cover value-added tax also. The government is expected to create a new and better incentive scheme. The new incentive scheme is also to provide an equilibrium of responsibility for both government and society. This paper contributes theoretically by examining new types of tax incentives, namely COVID-19 tax incentives, and helping policymakers make better tax incentive schemes in the future.

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R&D tax incentive scheme and in-house R&D expenditure: evidences from Indian firms

Journal of Advances in Management Research ◽

10.1108/jamr-05-2019-0080 ◽

2019 ◽

Vol 17 (3) ◽

pp. 333-349 ◽

Cited By ~ 2

Author(s):

Manu Jose ◽

Ruchi Sharma ◽

Madan Dhanora

Keyword(s):

Innovation Policy ◽

Raw Materials ◽

Manufacturing Firms ◽

Incentive Scheme ◽

Tax Credit ◽

Firm Innovation ◽

Content Type ◽

Tax Incentive ◽

Pharmaceutical Industries ◽

The Impact

Purpose The purpose of this paper is to examine the impact of research and development (R&D) tax credit scheme on participating firm’s R&D expenditure in Indian manufacturing firms. Design/methodology/approach Tobit model is used to estimate the impact of R&D tax credit scheme on R&D expenditure. Findings The results suggest that there is a positive and significant effect of R&D tax incentive scheme on R&D. The introduction of the R&D tax credit scheme and the policy amendment are positively influencing R&D investment of the participating firms. However, industry-specific results suggest that these positive results are mainly driven by electronic and pharmaceutical industries. The study reveals that import of technology, import of raw materials, competition, profitability, age and leverage position of the firm also positively influence the R&D intensity of the firm. Research limitations/implications The study is limited to the listed manufacturing firms in India. Practical implications The study evaluates the innovation policy to help the policymakers in designing an effective policy. Originality/value The paper provides evidence on the impact of R&D tax incentive scheme on firm innovation to explain the factors that contribute to the R&D expenditure of the participating firms. It also summarises the effectiveness of tax incentive scheme on different industry groups and firm size.

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Reshaping R&D Tax Incentive Policy in Terms of International Tax Competition

Európai Tükör ◽

10.32559/et.2020.4.4 ◽

2021 ◽

Vol 23 (4) ◽

pp. 43-57

Author(s):

Katsiaryna Marmilava

Keyword(s):

Research And Development ◽

Tax Competition ◽

Tax Incentives ◽

Tax Incentive ◽

Incentive Policy ◽

International Tax Competition ◽

Private Research ◽

International Tax ◽

Decision Making Model ◽

The Impact

Policies to stimulate research and development are significant in the government’s agenda and affect businesses growing internationally. The article highlights the role of tax incentives in the policy mix to promote private research and development (R&D). It discusses evolution and recent trends in R&D tax incentive schemes in European countries. The impact of international tax competition on their adoption and generosity is investigated. Moreover, a decision-making model on implementation and generosity of R&D tax incentives is introduced.

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