Instability of a political situation in Russia, imposition of economic sanctions of EU countries, strong dependence of Russian economy on prices of oil and gas has shifted the focus to innovative component. As a privilege for investment activities support, both in world practice and in Russia, investment tax credit (ITC) is one of the tax incentives tools. The article considers the issues of economic and legal entity of this category; we point out development stages of this tool and consider foreign experience of the application of ITC mechanism using the example of France and Norway. During the analysis we’ve revealed fundamental differences between Russian ITC and foreign ITC. We assess the application of ITC in the Russian practice; we reveal the main reasons hindering the distribution of investment tax credit in domestic practice and we suggest specific solutions to these issues.
Highlights:
Investment tax credit, which still hasn't been properly applied in Russia, is designed to become an important tool for stimulation of enterprise’s entrepreneurial and investment activity under the conditions of the need to develop competent innovative policy.
Investment tax credit (ITC) is the state mechanism for support of R&D and production of innovations; it involves the elements of loan financing.
ITC involves all signs of classical crediting. It is the main distinctive criterion of the Russian tax credit from foreign tax credit. In foreign practice the tax credit implies the reduction of taxpayer’s tax liabilities for the amount of expenses incurred.
ITC was introduced in Russia in 1992 and originally was aimed at restructuring debt of the enterprises for taxes and fees.
Taking into account the past ten years we may say that in the Russian practice the ITC tool actually doesn't work: for the given period in the field of federal taxes, ITC hasn’t been provided in general, and granting of ITC has been recorded only on the regional line.
In 2016 there was a significant growth of the number of granted ITC; total amount of credits granted is 300 million rubles.
In Russia we need to modernize the standard and legal base regulating ITC.
Despite the low efficiency and essential defects, stimulation of innovative investment activities by means of ITC in our country gains popularity.
Results of the study allow considering ITC as an effective tool for improving investment attractiveness of the country, and which is favorable both to private business, and to the state.
Tel : +7 495 649 6241
Fax : +7 800 3331538
E-mail : bgscience@idbg.ru
Address : RUSSIA, 101000, Moscow, Myasnitskaya st. 13-2
