The practical aspects of tax incentives of innovation of enterprises in developed countries of the world

Abstract

Innovation is a key factor for development for most companies and the country as a whole. The building of an effective innovation system helps to increase the profits of domestic enterprises, and as a consequence, increase tax revenues to the state budget. The article is devoted to the actual problem about of tax incentives for economic activity in the area of innovative development.The research paper examines the essence of the category of “tax incentives”.Tax incentives for innovation are a set of measures aimed at creating favorable conditions for R&D and development of domestic enterprises, expanding existing production capacity, revitalizing the innovation economy, reviving the investment environment through the use of tax tools and mechanisms. The authors analyze foreign experience in the application of tax tools to influence and support the innovative activities of enterprises. The most common type of tax incentive is a R&D tax credit. The authors describe the operation of the main fiscal tools used by developed countries.The wide range of uses of fiscal tools to motivate innovation is typical for France and the United States.The development of the innovative economy, increasing business activity and competitiveness of the country are the results of the implementation of an effective tax policy to stimulate enterprises.State support for Ukrainian innovative enterprises is underdeveloped and is provided through the provision of tax benefits. The authors indicate the need to develop a set of measures to stimulate innovation in Ukraine, in particular introduction of a R&D tax credit and an earned income tax credit, reduction of tax rates for definite categories of enterprises. The authors consider that the IT industry requires special tax support in Ukraine. It is the subjects of the IT sector that are able to increase revenues to the state budget and bring the economy out of crisis. A promising direction for further exploration in this problem is the development of methodological approaches to the introduction of effective tax incentives in the context of supporting the innovative activities of enterprises of Ukraine, taking into account foreign experience.