Investment Tax Credit

The main law of any business – costs should not exceed profit. Taxes – costly part of this process. To cut expenses temporarily the tax investment loan is provided in the state. Let’s understand what it is.

It is quite strange to obtain the credit which you have not borrowed, isn’t it? The tax credit is not a pack of bank notes; it is just a payment deferral of the tax liabilities. The entrepreneur can arrange such credit if he isn’t able to pay currently the tax amount or wants to use these assets. It will allow reducing or to pay a tax any time, however later on money should be paid off with percent.

Argument which can form the basis for obtaining such credit is scientific activities of the company, implementation of innovations, implementations of new technologies or accomplishment of special orders from the state.

The decision on provision of such credit is made by authorized bodies in which power business activity is performed. Decision can be issued by tax police in a place of registration of the businessman. Delay is granted on the income tax, the local taxes and regional. The last are made according to the decision of regional authorized bodies.

The tax credit can be issued no more than for five years, but in certain cases exceptions are done and provided term till ten years.

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