Analyse critique des incitants fiscaux à la RD des entreprises
AbstractThis paper provides an in-depth and critical analysis of the current Belgian fiscal regime towards business research and development (R&D) expenditures. The paper clearly shows that what matters the most is the way a policy decision is implemented. In this respect the current R&D tax credit scheme is subject to several drawbacks. The first one is the very low level of support for ‘additional’ researchers. The second one is the ‘nominative’ aspect of each tax credit: the deduction is allowed for well-defined employees. The third main drawback is the non-permanent characteristic of the tax credit. Once a deduction is allowed for an employee, it must be validated for each subsequent year. These drawbacks are associated with a high level of complexity and a heavy administrative burden, for a weak or zero effectiveness of the scheme. We suggest several avenues for improvement, including a drastic simplification of the policy design and a much higher generosity, especially if the Lisbon objective is to be reached.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 04-012.RS.
Length: 23 p.
Date of creation: 2004
Date of revision:
Publication status: Published by:
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R&D tax credit; fiscal policy; policy design; research expenditures.;
Other versions of this item:
- Bruno Van Pottelsberghe De La Potterie & Esmeralda Megally & Steve Nysten, 2004. "Analyse critique des incitants fiscaux à la R&D des entreprises," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 71-92.
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
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- Bruno Van Pottelsberghe De La Potterie, 2004.
"Les politiques de science et technologie et l'objectif de Lisbonne,"
Reflets et perspectives de la vie économique,
De Boeck Université, vol. 0(1), pages 69-86.
- Bruno Van Pottelsberghe, 2004. "Les politiques de science et technologie et l’objectif de Lisbonne," Working Papers CEB 04-011.RS, ULB -- Universite Libre de Bruxelles.
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