What Type Of Company Is Eligible For Support Essay example

What Type Of Company Is Eligible For Support Essay example

Length: 1080 words (3.1 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Full depreciation allowance enable firms deduct up to 100 percent of their current expenditure on R&D.
Special depreciation allowances allow firms deduct more than 100 percent of their current expenditure on R&D.
Tax credit enables firms directly deduct a certain threshold of their current expenditure on R&D from corporate tax. And this kind is the most popular used instrument in many countries (Köhler et al. 2012).
3.1 Target group
What type of company is eligible for support is the crucial question. Target group is used to serve specific-oriented object by policy makers. Therefore, classifying firms based on their characteristics is the design element, which governments must consider when building the policy.
Firstly, small and medium-sized companies can benefit more generosity in tax credit than large firms. Or they can be offer a more flexible feature such as cash refund (Van Pottelsberghe, et al. 2003). The recently established companies meet many barriers to survive and develop in comparison with old firms. Most of countries give preferential for young companies. Because small and medium-sized firms have some disadvantages in comparison with big firms, then they may need to have innovation products to compete. It is necessary to support young firms to increase the competitiveness business environment.
Secondly, as Köhler et al. 2012, the target subjects are classified according to the type of R&D projects, which they pursuit. Even the use of R&D tax incentive for particular sectors is restricted as EU competition law. In some countries, biotechnology is the priority whereas, the other chose laser industry. But doing determination type of R&D project is not easy. It takes administration cost from authority.
Moreover, if firm...

... middle of paper ...

...hoices is selecting the tax base. The options of basic calculation are between a volume-based or incremental base. A volume -based mechanism allow firms benefit from deduction of entire current eligible R&D expenditures. By contrast, with incremental scheme the tax credit is only calculated based on the extra number of R&D expense that exceed a certain base amount (Van Pottelsberghe, et al. 2003). And the reference level usually defined as an average of past expenditure, within 4 years period, for example. It is noticed that tax credit can be positive or negative depend on whether the current level of expenditure is higher or lower than a reference level. In case tax credit is negative, then it will be deductive from future positive tax credit. Besides, there is “hybrid” option, which combines both volume and incremental scheme as the base for tax credit calculation.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Executive 's Give Annual Pay Raises

- In most companies today, CEO’s give annual pay raises due to an employees work ethic. There are different kinds of employees that work at companies; including experienced workers, young workers, and old workers. However, in the case “Companies Rethink Annual Pay Raises” Rachel Emma Silverman breaks down the company called, “BetterWorks” and other companies and how they prioritize and decipher who gets pay raises. Many scholars according to the case and in other cases believe that an employee should receive a raise because of the value and work that they give to the company....   [tags: Employment, Salary, Company, The Work]

Strong Essays
979 words (2.8 pages)

Essay on Coca Col The Type Of Business

- Coca-Cola 1. The type of business Coca-Cola is a large, international, for profit organisation. It is in the private sector of businesses and therefore a public limited company. They are leaders of the soft drinks industry in Great Britain and they aim to grow more, and to grow responsibly and sustainably. They sell products in every country around the world except for Cuba and North Korea, although it is reported to be available in both countries as a grey import. They are available in more than 195 nations, and they have 47% of the market share globally in soft drinks, and at least 80% of their income comes from outside North America....   [tags: Coca-Cola, The Coca-Cola Company]

Strong Essays
707 words (2 pages)

Alcoholics Should NOT Be Eligible to Receive Organ Transplants Essay

- In modern medicine, we have the ability to transplant organs from one person to another, with the hopes that this will greatly improve the length and quality of life for the patient receiving the transplant. Ten years ago, there were 53,167 people on the transplant list. By the beginning of 2015, the list increased to over 123,000 people waiting for that miracle call stating that they found a match and the transplant can now happen. One reason for the increase in people on the list is that people in the age group between 50-70 years old are now considered to be viable candidates for transplant due to medical advances....   [tags: Medical Ethics ]

Strong Essays
1098 words (3.1 pages)

The Boomers Are Becoming Eligible For Medicare Essay example

- Literature Review Between 1946 and 1964, the United States experienced a drastic increase in birth rate and these individuals became known as the baby boomers (Smith, 2007, pg. 2). Now, the baby boomers are turning 50 and each day 10,000 baby boomers are becoming eligible for Medicare (Barr, 2014b, p. 1). The staggering numbers of eligibility is beginning to impose a financial burden on Medicare, and healthcare providers, policy makers and others are trying to come up with new models of care and concepts to improve quality, cut healthcare costs, and withstand the onslaught of acute and chronic illnesses (Barr, 2014b, p.1)....   [tags: Nursing home, Nursing, Nursing specialties]

Strong Essays
1066 words (3 pages)

Pros and Cons of Company IT Outsourcing Essay

- 1. Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer. Competitive advantage is an advantages the advantage that a firm has over it is competitors which is allowed it to generate the grater sale or margin then retain more customers than it competition. In the competitive advantages there many types of competitive advantages include the firms cost structure, product offerings, distribution network and customer support....   [tags: cost, product offering, customer support]

Strong Essays
1159 words (3.3 pages)

Personality Types Of Personality Type Essay

- Often, I have taken personality tests online to determine what my “actual” personality type is. Some have been helpful and others have been completely different from who I feel that I am. After taking the 16 personalities test, I feel the results to be very accurate. There were some things that I did not agree with, but, majority of what I read describes me to a tee. Personality is defined as the visible aspect of one’s character as it impresses others (www.dictionary.com). The results from my 16 personalities test reveal that I am an ESFJ personality, also known as “The Consul”....   [tags: Personality psychology, Personality type]

Strong Essays
1159 words (3.3 pages)

Government Sustained Insurance Company Is The Type Of Health Insurance Essay example

- Government sustained insurance company is the type of health insurance company, which is Blue Cross and Blue Shield’s Federal Employee Program. This is applied by the government’s initiative to provide an accessible and affordable health care to its employees according to Blue Cross Blue Shield (2015). This is to ensure that as an employee, there are numerous health care benefits that can be acquired through this service that will help to promote health. As a health care insurance, this is considered as a mandatory service because employees needs to have health care insurance so that they can be protected from any risks and threats affecting their health....   [tags: Health insurance, Health economics]

Strong Essays
1081 words (3.1 pages)

Essay on Evaluation Of A Decision Support System

- Brainstorming Reflection 1 The area of information system application chosen is the decision support system. A decision support system (DSS) is an information system designed to help leaders and team’s members to reach a decision when a decision-making situation arises (Haag, 2013). In the area of management that I have worked, I have experience a range of decision support systems that helps with a range of decisions depending on the tasks and missions. Brainstorming Reflection 2 The transaction processing and management information systems provide information on a regular basis....   [tags: Decision theory, Decision support system]

Strong Essays
704 words (2 pages)

Decision Support For Disorganized Decisions Essay

- 1a. Decision Support Systems generally provide support for disorganized decisions. DSS problems are often characterized by unfinished or questionable information, or the use of qualitative data. DSS includes modeling tools where different sequence of events can be modeled and compared. Investment decisions are an example of what might be supported by Decision Support Systems. Management Information Systems are generally more refined reporting systems built on existing transaction processing systems....   [tags: Decision support system, Decision theory]

Strong Essays
2131 words (6.1 pages)

Performance Support Systems Essay

- Performance Support Systems Abstract The purpose of my paper is to discuss Performance Support Systems, the reason why some people fear them, concerns surrounding them, and why there is a growing trend for their use and their redefinement. Performance Support Systems Defined Electronic Performance Support Systems otherwise known as EPSS were born in the early 1990s by Gloria Gery, who was described as an educational software guru by Phillip Longman in his journal article, The Janitor Stole My Job....   [tags: Technology Support System Essays]

Strong Essays
1601 words (4.6 pages)