With different regimes for tax incentives for R&D across the EU, it can be hard to forge the country-to-country links that they like to encourage in the Framework Programme. Some new notes from Brussels set out to make life easier in the future.
"Well-designed tax incentives are intended to support R&D investment and innovation in a simpler and more predictable way than grants." That's the view in a new notice on the Europa web site.
The trouble is that tax is still something that is in the hands of national governments. as a result, says the notice "the European fiscal landscape is fragmented, excessively complex and sometimes discriminatory against foreign organizations and multinational R&D partnerships". That's why "the Commission adopted on 22 November 2006 a Communication defining guidance to bring about a more effective, stable and concerted use of R&D tax incentives across Europe".
Check out the associate press release and memorandum for more details. The release quotes European Science and Research Commissioner Janez Potočnik as saying "We want to break down the barriers that prevent companies and researchers working together across internal borders and so create a European Research Area. A common approach to tax incentives would be a good step in the right direction."
The memo, presented as an "FAQ," describes what could be a minefield with arguments about when an acceptable tax incentive becomes an unacceptable subsidy.
One interesting bit of information in the note is that 15 of the 25 EU Member States have tax incentives for business research and development in place.
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