TAXATION OF INNOVATIVE ACTIVITY OF BELARUS: PROBLEMS AND DIRECTIONS OF IMPROVEMENT
The lack of the necessary resources directed to innovations and technology at the enterprises is one of the main reasons explaining low effectiveness of the Belarusian innovative system. It demonstrates the need to accelerate an implementation of the state strategy of scientific research and innovations support in Belarus. Tax tools are the defining mechanism of stimulation of activity of the companies in the field of innovative development.
Reference points in the sphere of innovative development in Belarus are fixed by a number of national regulations, in which are defined the tools and methods of the Belarusian state innovative policy. And it’s main objective is to create favorable social-economical, organizational and legal conditions for innovative development and to increase the competitiveness of national economy.
It is inefficient to make use of experience of application tax benefits by foreign countries directly, including those relatives of Belarus on structure of economy or on rates of development. It is necessary to define priorities of support in use of instruments of tax incentives from the point of view of subjects of support.
The certain problems are peculiar to the granting privileges on payment of taxes and fees as the instrument of increase in innovative activity of economic entities in Republic of Belarus:
- the increase in tax benefits can lead to abuses for reduction of the tax obligations by the companies;
- direct stimulation of consumers of the knowledge-intensive production isn't provided in the existing Belarusian legislation, at the same time they define demand for this products.
The article considers the economic maintenance and structure of tax benefits, which are applied in Belarus. The author offered to add them with tax incentives, which will contribute to more successful development of innovative activity. To stimulate the companies to participate in scientific, technical and innovative activity it is offered to grant the right for a privilege on scientific research and development to those employers, who carry out duties of tax agents on deduction of income tax from the salary and contributions to the Fund of social protection in case if such employers have employees who are carrying out scientific research and developments. Scientific research and developments to which such privilege can be applied have to be carried out at the expense of own company funds. To receive the privilege, the company and individual entrepreneurs have to submit independently applications to specially created organization at the Ministry of Economics of Republic of Belarus, which can define for each project the degree of novelty's compliance in comparison to the established requirements. The offered privilege can give an opportunity of reduction of a rate of contributions to the Fund of social protection for 40 percent, and for the newly created small and medium-sized innovative companies it is expedient to increase the amount of reduction to 60 percent. The proposed measure is aimed to stimulate the innovative activity by the companies, which have no profit or its level is insignificant. Besides, this privilege promotes additional investments into the human capital.
It is also offered to include expenses, which are incurred by the taxpayer on the state registration of results of intellectual activity on inventions and useful models, at a rate of the actual expenses with coefficient 2 in the initial cost of a depreciable non-material asset. At the same time, it is offered to establish useful service of such objects of intangible assets no more than one year.
For rendering targeted state support to subjects of small innovative business in the form of tax benefits, the establishment of the status of "the small innovative company" for small firms is offered, including newly created. Such status has to be provided for no more than for five years. It is necessary to define accurately the criteria of "the small innovative company", considering volumes of costs of research and development. For again created companies, which don't have financial history, such status can be awarded following the results of external audit.
The proposed measures are designed to improve cash flows of the innovative companies and to lower their expenses.
The formation of the concept of tax incentives of innovative activity and the development of methodical approaches for assessment of economic efficiency of tax methods of stimulation of innovative activity is necessary at the moment in Belarus.
Hall B.H., Reenen J. (2000) How Effective are Fiscal Incentives for R&D? A New Review of Evidence. Research Policy, vol. 29, pp. 449-469.
Castellacci F., Mee Lie Ch. (2015) Do the effects of R&D tax credits vary across industries? A meta-regression analysis. Research Policy, vol. 44, Issue 4, pp. 819-832.
Kitt M. (2016) Research and Development Tax Reliefs, Second Edition. Bloomsbury Publishing.
Yanik A.A., Popova S.M. (2015) Novoe v nalogovom stimulirovanii innovatsiy: opyt ryada evropeyskikh stran [New in tax incentives of innovations: experience of a number of the European countries]. Taxes and taxation, vol. 11, pp. 908-919.
Davydenko E.L., Botenovskaya E.S. (2015) Yevropeyskie strany s maloy ekonomikoy. Osobennosti vneshney torgovli i innovatsionnogo razvitiya [The European countries with small economy. Features of foreign trade and innovative development]. Minsk: BSU. (in Belarus)
National statistical committee of Republic of Belarus (2017) Nauka i innovatsionnaya deyatelnost v Respublike Belarus: statisticheskiy sbornik [Science and innovative activity in Republic of Belarus: statistical collection]. Minsk: National statistical committee of Republic of Belarus, p. 138.
About the State program of innovative development of Republic of Belarus for 2016-2020: The Decree of the President of Republic of Belarus, January 31, 2017 No. 31 (In edition of the Decrees of the President of Republic of Belarus from 7/25/2017 No. 258, 11/30/2017 No. 428. Minsk: National legal Internet portal of Republic of Belarus, 8/1/2017, 1/17181; 12/2/2017, 1/17378.
About the state innovative policy and innovative activity in Republic of Belarus: The Law of Republic of Belarus, July 10, 2012 No. 425-3: with amendments and additions from May 11, 2016 No. 364-Z. Minsk: National legal Internet portal of Republic of Belarus, 5/17/2016, 2/2362.
Elschner, Christina, and Ernst, Christof (2008) The Impact of R&D Tax Incentives on R&D Costs and Income Tax Burden. ZEW Discussion Paper No. 08-124. Available at: http://www.zew.de/PU68082-1 (accessed 02 April 2018).
Tax Code of Republic of Belarus (General part), December 19, 2002: with amendments and additions from January 1, 2018 No. 166-Z. Minsk: the Standard Belarus [An electronic resource] / the National Center of legal information of Republic of Belarus.
About the Park of high technologies: Decree of the President of Republic of Belarus, September 22, 2005, No. 12: in an edition of the Decree of the President of Republic of Belarus from 11/3/2014. Minsk: the Standard Belarus [An electronic resource] / the National Center of legal information of Republic of Belarus.
About development of digital economy: The Decree of the President of Republic of Belarus, December 21, 2017, No. 8. Minsk: National legal Internet portal of Republic of Belarus, 12/27/2017, 1/17415.
- There are currently no refbacks.