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Tax Incentives For Research And Development In Austria And Croatia: B-Index

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  • Sabina Hodzic

    (University of Rijeka)

Abstract

Tax incentives for research and development represent an important tax relief within corporate income tax. B-index helps to detect differences in the influence of tax system on private sector to invest in research and development. The main objective of this paper is to present tax incentives for research and development, and calculation of B-index in Austria and Croatia. B-index results show better treatment of R&D tax incentives in Croatia than in Austria. B-index value in Croatia is 1,09 and in Austria 1,25. Fiscal policy leaders must pay attention to offer tax incentives that are stimulative enough for companies not to lose interest in their use. Otherwise, country would only have short-term revenue in the budget. In order to increase state budget, it is very important to collect sufficient revenues from the corporate income tax.

Suggested Citation

  • Sabina Hodzic, 2013. "Tax Incentives For Research And Development In Austria And Croatia: B-Index," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 22(2), pages 397-416, december.
    • Handle: RePEc:avo:emipdu:v:22:y:2013:i:2:p:397-416
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    More about this item

    Keywords

    corporate income tax; tax incentives for research and development; B-index; tax expenditure;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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