Study on An Introduction of Additional R&D Tax Incentives
Asian Tax Journal Vol. 6 No. 4 (2005), pp. 127-150
Abstract
In order to encourage R&D investment and compete with not only developed countries but developing countries like China, south east countries, substantial R&D tax incentives which is equivalent level to competitive countries is required. This paper analyzes competitive countries' R&D tax incentives, R&D statistical data and the survey of current R&D incentives system for small & medium and venture company (“SM&V Co”). This study suggests the following additional R&D tax incentives：First, Current R&D tax incentive based on the special tax law is required to regulated in the Corporate tax law for long－term based R&D plan. Second, all R&D expenditure which Big sized company incurred on Co－R&D work with SM&V Co and fundamental research should be allowed additional R&D tax incentives. Third, carry forwarded R&D tax credit which SM&V Co may not be credited against the amount of income tax payable is considered to be paid as cash at the proper time for encouragement of R&D investment. This study provides the better guideline for the reform of R&D tax incentives for policy makers and tax authorities.
Keywords
- R&D
- R&D investment
- An introduction of additional R&D tax incentives.
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