Chamber of Commerce: Tax incentives for innovation, unlimited advertising costs

Beginning in 2019, companies will be able to write off for tax purposes the entire marketing budget, instead of just 10%, as it was the case before. In other words, all the funds spent on advertising will be recorded as expenditures in tax balance sheets – the Chamber of Commerce and Industry of Serbia (CCIS) has announced.

The CCIS also proposed the abolition of the marketing expenses threshold, which the Ministry of Finance accepted and included in the Draft Law on Income Tax for Legal Entities, together with the previously announced changes in the manner of the calculation of tax amortization.

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The proposed amendments show that the CCIS has also pushed in favour of incentives for innovations and research and development.

Thanks to the amendments, investments in research and development will be recognized as an expense in double the amount of the actual cost, and 30% of the investments in new innovative companies will be recorded as tax credits.

A total of 80% of intellectual property income will be exempt from taxation, the press release says.

According to the Serbian Finance Minister, Sinisa Mali, these CCIS initiatives means that the interests of innovative businesses will be finally incorporated into the relevant regulation.

The CCIS announces that these are the first steps reducing operative costs of companies in Serbia and improving the tax environment. The Chamber adds that 2019 will be a year of reforms of the Tax Administration and the taxation system in Serbia.

(Novi Magazin, 08.11.2018)

http://www.novimagazin.rs/ekonomija/pks-podsticaji-za-inovacije-bez-praga-za-reklamne-troskove

 

This post is also available in: Italiano

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