Innovation is recollection

 

President Medvedev has signed a law to support companies in crisis and provide them with the incentive to spend more on new equipment and R&D. The idea is to revitalise some regulations that already exist in law but don’t work in practice.

In particular, the law clarifies how companies can get ‘tax credit’ (deferred payment of their tax) in case of financial difficulties. So far, few businesses, if any, have been allowed to pay their tax through special timetables agreed with the tax authorities, although theoretically this opportunity exists.

The law explains how taxpayers should argue that immediate payment of taxes may bring them to bankruptcy. It is assumed, however, that taxes must be paid in any case: the size of the postponed tax liability may not exceed the net assets of the company and the arrangement must be secured by collateral or guarantee.

The law also increases the amount of ‘investment tax credit’ for companies that conduct technical re-equipment or R&D to the entire value of purchased equipment. This rule hasn’t worked so far and another law may be needed to make it become a reality.

Finally, the government sent a new bill to the Parliament with the proposal to give the private foundations that finance science and innovation the same tax benefits that so far have only been enjoyed by state funds. If it becomes law, the resources spent on research and innovation will be excluded from taxation (within 1.5% of income or gross receipts).

 

August 18, 2010
photo: Leslie Murray - Fotolia.com

 

 

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