28 introduction of tax measures to promote research

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28.- Introduction of tax measures to promote research and innovation (Article 124bis).- Following the entry into force of the Economic Partnership Agreements, public authorities seek to strengthen the competitiveness of enterprises Industrial and commercial sectors through research and innovation. As from 1 January 2017, companies operating under the real estate regime will be able to claim a tax credit for the research and innovation expenses they incur. The rate of the tax credit is 15% of the expenses incurred, and has a ceiling of 50 million FCFA. It shall be chargeable up to a maximum of three financial years following the year in respect of which the expenditure was incurred. The Law, speaking of expenses incurred, can be considered, as does Circular No. 001/MINFI/DGI-LRI/L of 12 January 2017, that these are "charges" and are not necessarily paid. However, by conditioning the consideration of expenses eligible for the tax credit to their commitment through a research and development program aimed at improving production processes, launching new products ..., the aforementioned circular seems to overstep its competences. How is it possible to establish this link with "donations and donations made to the benefit of independent researchers", for example? 29.- Revision of the procedure for calculating ad valorem excise duties on certain alcoholic beverages (Article 141bis new).- The public authorities advocate the production of beverages with a low alcohol content, as these Would be less harmful to health. It is in this regard that the Finance Law for the financial year 2017 revises the tax base for ad valorem excise duties on alcoholic beverages with an
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alcoholic strength equal to or less than 5.5. For these beverages, a reduction of 20% on the basis of taxation is applied for the calculation of the ad valorem excise duty. This measure should result in a slight decrease in the selling price of the beverages concerned. It is up to the price bodies to ensure that this expected reduction benefits the final consumer, not only wholesalers, half-wholesalers and retailers. 30.- Revision of the provisions relating to the Special Income Tax (articles 225, 225ter and 228).- The common-law SIT rate of 15% proved to be a deterrent to public procurement abroad, in particular Since the 2015 reform, as outlined in our 2015 contribution "Tax News in 2015". In addition, the legislation in force provides for the repayment of the TSR within 15 days following the event giving rise to the Public Treasury, whereas the other taxes and duties are remitted no later than the 15th of each month. In order to correct the situation, the Finance Law for the financial year 2017 aligns the transfer period of the SIT with that of other ordinary taxes, namely the 15th of the month following that in which the event giving rise to the event occurred. The same law also distinguishes from now on the regime of the SIT of the public order and that of the traditional SIT. The reduced rate of 5% shall apply to remuneration paid in connection with public procurement contracts for which the
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  • Fall '19
  • tax administration

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