Tax Incentives as a Stimulant of R&D Activities in Enterprises with the Special Review on Their Accounting Framework in B&H
Main Article Content
Abstract
In the centre of attention of Recovery Plan of the EU for period 2010‐14 are, so called, “smart investments” which, during long‐term, should ensure higher growth and sustainable prosperity. ʺSmart investmentsʺ mean investments in research and development (R&D) and investments in education from both public and private sources of funding. In order to stimulate higher investments in R&D activities by private sector it is recommended to use public – private innovation partnerships (direct way) as well as wider usage of R&D tax incentives (indirect way). As R&D tax approach has a strong policy impact, this paper will deal with different R&D tax (accounting) schemes and their impacts on financial performances of enterprises. As Bosnia and Herzegovina admitted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) for its accounting framework, this paper will examine relevant IAS and IFRS in order to find out “positive” or “negative” effects of each R&D tax accounting scheme for proper financial treatment of R&D activities in enterprises. The overall aim of this paper is to answer the question: which R&D tax subsidy model would be the most appropriate one for B&H, respecting the present Legal and Accounting Framework, as well as cost and benefits of each recommended model?
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.
Authors reserve the copyright to published articles and have the right to use the article in the same manner like third parties in accordance with the licence Attribution-Non-Commercial-Non-Derivate 4.0 International (CC BY). Thereby they must quote the basic bibliographic data of the source article published in the journal (authors, article title, journal title, volume, pagination).
References
Credit for UK Firmsʺ(2001). Briefing Note No.15, Institute for Fiscal Studies, London
Goolsbee, A. “Does Government R & D Policy Mainly Benefit Scientists and Engineers?”, (1999),
American Economic Review 88 (2). pp. 298‐302.
Hall, B. (1995), ʺFiscal Policy towards R&D in the United States: Recent Experienceʺ, OECD
R&D Tax Incentives: rationale, design, evaluation (2010),OECD
Supporting growth in innovation: enhancing the R & D tax credit, (2005), HM Treasury, United
Kingdom
Tax Incentives for Research and Development: Trends and Issues, Science and Technology Industry,
(2002). OECD
Towards a more effective use of tax incentives in favour of R & D, (2006), Commission of the
European CommunitiesCommission Staff Working Document, Brussels.
Vukmirovic, N., Turkanovic, D. “The Impact of Intangible Assets Investments on the Financial
Stability and Profitability of Enterprises”,(2010). II International scientific conference: Technology
Innovations a generator of economic growth, Association of Inventors of Republic of Srpska