Examining the Aspects of Designing a Tax Credit for Research and Development in Economic Enterprises of Iran Based on the Experiences of Other Countries and Proposing an Implementation Model
Abstract
One of the regulatory and systemic tools used by governments to support research and development activities in economic enterprises is the implementation of tax incentives. Experience from developed countries shows that tax incentives, with the goals of technology and economic development, are generally utilized in the form of expenses and as a research and development tax credit. Among the reasons for the importance of this tax incentive are the ease of adjusting the tax credit rate compared to changes in the corporate tax rate, the direct deduction of the research and development tax credit from the enterprise’s tax liability, the tax transparency created through this process, and more effective targeting and coverage of the risk associated with research and development expenditures.
In this article you also read about:
International experiences of Providing Research and Development Tax Credits to Economic Enterprises
General Principles for Designing and Implementing Research and Development Tax Credits for Economic Enterprises in Iran
And in order to propose an optimal model, four key principles have been suggested:
1.Simplicity in design and implementation
2.Reasonable administrative and operational costs
3.Low possibility of violation
4.Smart system integration
The Proposed Model for Granting Research and Development Tax Credits to Business Enterprises in Iran
This study was conducted at Innovation Think Tank by Asgar Sarmast and Hamidreza Sahari in 2022.
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