Economics at your fingertips  

Analyse critique des incitants fiscaux à la R&D des entreprises

Bruno van Pottelsberghe de la Potterie, Esmeralda Megally and Steve Nysten

Reflets et perspectives de la vie économique, 2004, vol. XLIII, issue 2, 71-92

Abstract: This paper provides an in-depth and critical analysis of the current Belgian fiscal regime towaRrdbusiness research and development (R&D) expenditures. The paper clearly shows that what matters 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.

Keywords: D tax credit; fiscal policy; policy design; research expenditures (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) ... e-2004-2-page-71.htm (text/html)

Related works:
Working Paper: Analyse critique des incitants fiscaux à la RD des entreprises (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Reflets et perspectives de la vie économique from De Boeck Université
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().

Page updated 2019-10-23
Handle: RePEc:cai:rpvedb:rpve_432_0071