PORESKI PODSTICAJI ZA ULAGANJA U OSNOVNA SREDSTVA I NJIHOV UTICAJ NA VISINU PORESKE OBAVEZE ZA POREZ NA DOBIT

Abstract

This paper analyzes the tax incentive for investment in fixed assets and its impact on the corporate income tax liability of legal entities. The aim of the research is to identify the mechanisms of the tax relief that stimulates investments, as well as to present the manner in which this tax relief affects the tax liability of legal entity. Taxpayers in the Republic of Serbia may, through the application of this incentive, reduce their corporate income tax liability by up to 100%, making it one of the most favorable incentives in the region. However, due to methodological limitations, it is not possible to provide a precise estimate of the reduction in tax liability resulting from the use of this incentive, nor the amount of deferred tax assets and liabilities. By applying basic scientific methods: methods of analysis and synthesis, inductive and deductive methods, methods of description and methods of comparison, the results of the study indicate a significant potential of this tax incentive as an economic policy instrument aimed at encouraging investment and economic growth.