TAX INCENTIVE SCHEMES FOR R&D – A SOLUTION FOR THE ROMANIAN ECONOMY
TAX INCENTIVE SCHEMES FOR R&D – A SOLUTION FOR THE ROMANIAN ECONOMY

Summary/Abstract: This study aims to examine whatare the most efficient designs for a tax incentive scheme for Romania. We also investigated the relationship between the level ofeconomic development and the R&D intensity in the European Union States. Our results suggest that the policy making authorities should focus on facilitating private investments in R&D, and especiallyon specific fiscal incentive schemes for SMEs. These schemes are important and efficient because they, by supporting enterprise’s real needs, are not distorting the markets, thus facilitating and supporting R&D projects with very specific needs, with a more appropriate timing of the projects. After a complex description and analysis of ten examples of good practice in EU, we found out that an efficient scheme for R&D activities in Romania should focus on R&D expenses, containing both capital and current expenses, a benefit in form of an additional deduction for eligible R&D expenses, a flat rate system and size differentiation

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