Tax benefits for r&d as a tool to stimulate investments

Abstract

Importance: the spread of R&D around the world has led to the launch of new proposals and the improvement of existing ones. Research and development is an important function of many enterprises. This is the main way for a business to stay competitive and make a profit. Governments regularly use tax policy to provide resources and incentives for research conducted by organizations. Many tax systems are designed to encourage spending on R&D and patented innovations through tax cuts. Purpose: to reveal the modern practice of tax incentives for R&D and identify proposals for their improvement. Research design: to achieve this goal, a complex of methods of scientific knowledge was used, including analysis, synthesis, a systematic approach, as well as special ones: comparisons, groupings, generalizations, statistical, etc. Results: the paper reveals the types of tax incentives for R&D. The foreign practice of granting tax incentives for R&D has been analyzed. The leading countries in the implementation of R&D are presented. An overview of the main tax incentives applied in the Russian Federation is given. An assessment of the current legislation in the field of tax benefits is given. It is concluded that in the Russian Federation most of the R&D is financed from the budget, which makes it difficult to assess the effectiveness of tax incentives. The advantages of tax benefits, as well as their controversial points, are noted. Suggested recommendations for their improvement in order to stimulate investment.