Income Tax Incentives Policy in Special Economic Zones

This article examines the available approaches towards tax incentivization of the activity of subjects in the industrial and innovative clusters. Analysis is conducted on the tax benefits that could be received by the residents of preferential regimes, such as special economic zones, free economic zones, territories of advanced socioeconomic development within the framework of membership in the Skolkovo Innovation Center, as well as regime for the participants of innovative scientific and technological centers. The peculiarity this research is that tax incentives are examined from the perspective of their relevance on each stage of the lifecycle of an industrial product and innovation. The author's special contribution lies in the selected approach towards assessment of the effect of preferential tax regimes from the standpoint of the development of industrial and innovative clusters. The main conclusions are as follows: 1. Currently existing territorial regimes of taxation are aimed primarily at attraction of new investments to the Russian regions and include a range of tax support measures effective for the limited period on the first stage of lifecycle of the product or innovation; 2. From the perceptive of stimulation of participation in the industrial clusters, the available preferential regimes contain attractive and essential benefits for manufacturing industrial products, however, traditional regimes, such as special economic zones and territories of advanced socioeconomic development, no longer meet the needs of innovative companies. For stimulation of participation in the innovative clusters, tax regime for the Skolkovo Innovation Center currently seems most attractive. 3. Due to the fact that the existing regimes of special economic zones, free economic zones, territories of advanced socioeconomic development are aimed at the attraction of investment and focused on the first years of implementation of the project. For incentivization of the qualitative development of industrial and innovative clusters it is reasonable to assess the possibility of more even distribution of tax benefits or introduce other long-term methods of support.

Download Full-text

Methods of assessing of tax incentives effectiveness in special economic zones: An analytical overview

Journal of Tax Reform ◽

10.15826/jtr.2016.2.3.022 ◽

2016 ◽

Vol 2 (3) ◽

pp. 168-178 ◽

Cited By ~ 2

Author(s):

O. A. Sinenko

Keyword(s):

Tax Incentives ◽

Special Economic Zones ◽

Economic Zones

Download Full-text

Income tax exemption as a regional state aid in special economic zones and its impact upon development of Polish districts

Oeconomia Copernicana ◽

10.12775/oec.2016.015 ◽

2016 ◽

Vol 7 (2) ◽

pp. 245 ◽

Cited By ~ 1

Author(s):

Adam A. Ambroziak

Keyword(s):

Economic Development ◽

Income Tax ◽

Positive Impact ◽

Positive Influence ◽

State Aid ◽

Special Economic Zones ◽

Regional State ◽

The Social ◽

Social And Economic Development ◽

Economic Zones

Special Economic Zones (SEZs) were established to attract entrepreneurs to invest in Polish regions in order to increase their social and economic development. One of the most important incentives offered in SEZs is state aid in the form of an income tax exemption. The objective of this paper is to verify if the regional state aid granted to entrepreneurs in SEZs has had a positive impact on the social and economic development of Polish poviats. The conducted research allowed for the conclusion that regional state aid in SEZs in the form of an income tax exemption was of a relatively higher importance to the poorest regions, while its significance was much lower in better developed areas in Poland. Moreover the intensity of regional state aid granted to entrepreneurs in SEZs had a positive influence on the social and economic development of the poorest and sometimes less developed poviats in Poland, while the more developed poviats with SEZs did not record better or much better results compared to poviats without SEZs.

Download Full-text

Tax incentives as an instrument attracting investors to Special Economic Zones

e-Finanse ◽

10.1515/fiqf-2016-0021 ◽

2017 ◽

Vol 13 (2) ◽

pp. 36-44

Author(s):

Magdalena Jasiniak ◽

Jakub Koziński

Keyword(s):

Decision Process ◽

Questionnaire Survey ◽

Tax Policy ◽

Tax Incentives ◽

Income Taxes ◽

Special Economic Zones ◽

Investment Incentive ◽

Doing Business ◽

Preliminary Study ◽

Economic Zones

AbstractSpecial Economic Zones have been operating in Poland since 1994 and are still growing. Tax incentives being offered in these Zones, as good infrastructure and administration support, are supposed to be attractions for newly established companies. The purpose of this article is to investigate whether tax incentives have an impact on the decision process of locating the investments in Special Economic Zones in Poland. The article presents a preliminary study, based on results of a questionnaire survey conducted among companies located in SEZ in Poland and presents subjective opinions of the investors about tax policy in SEZs. Results show that tax incentives are an important instrument attracting investors to Special Economic Zones. As the following analysis presents, tax reliefs seem to be an important investment incentive, however, the importance of income taxes is greater than the local costs to doing business. There are also some differences in evaluating tax support depending on a company’s size and the level of support in a particular region.

Download Full-text

Export Promotion through Tax Incentives in Special Economic Zones (SEZs): Benefits and Concerns

VISION Journal of Indian Taxation ◽

10.17492/vision.v2i2.10179 ◽

2015 ◽

Vol 2 (2) ◽

Author(s):

Sandeep Jain

Keyword(s):

Foreign Trade ◽

Tax Incentives ◽

Export Promotion ◽

Raw Material ◽

Special Economic Zones ◽

Capital Goods ◽

Export Processing Zone ◽

Services Sector ◽

Economic Zones ◽

Processing Zone

India’s Export Processing Zone Scheme, launched in 1965, was the precursor to the present day SEZ (Special Economic Zones) Scheme. The SEZ Act was enacted in 2005 and made operational through SEZ Rules in February 2006. The SEZ scheme provides an ecosystem conducive to exports, wherein all clearances, starting from setting up of the unit, allocation of space, approval of raw material, capital goods, issuance of letters of permission, monitoring of exports, permission for sale in DTA (Domestic Tariff Area) etc. are provided at one place. The services sector is an extremely important component of our foreign trade and there are large inflows of investment into SEZs (specifically for software exports) and this trend is likely to continue over the next decade. In the light of this, we examine whether intended benefits are being achieved through the SEZ scheme and the related tax incentives. We also look at the concerns in the area of SEZs.

Download Full-text