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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
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