On behalf of Research and Scholarship Committee we are happy to invite you to join our next seminar delivered by Peter Schmidt on the topic of "Does a Tax Exemption of Retained Profits Provide Investment Incentives? - Evidence from Croatia 2013-2016"
Time: Friday, Apr 24, from 13:00 to 13:30
Connection: Zoom link https://rit.zoom.us/j/97679532312
We analyze a Croatian tax exemption of retained profits (abbreviated TERP) that was in effect from 2013 to 2016. Croatian corporations were allowed to deduct profits of the previous year from the tax base if these profits were retained and added to the company’s subscribed capital. This regulation was intended to create a lock-in effect and to stimulate investment and employment. We use firm-level data from 6,458 Croatian firms as the treatment group against a control group of 3,025 Slovenian firms, with a total of 85,347 observations, to investigate whether firms did use TERP and whether the desired investment and employment effects actually occurred.
We find that Croatian firms significantly increased their subscribed capital after the introduction of TERP. Further, the increase of subscribed capital varies substantially between different owner types. The most obvious reactions are observed for firms held by a single individual shareholder. Croatian firms that increased their subscribed capital also significantly increased investment in fixed assets, but only after a time lag of two years. Similarly, capital-increasing firms significantly do increase employment. Our results contribute to the knowledge on the effects of investment incentives. Based on our results, we conjecture that TERP tends to be effective, but inefficient device for stimulating investment.
Youth Business Camp Switzerland opens its licensed program Youth Business Camp Adria, which will take place in Zagreb from June 28 to July 9. The Youth Business Camp provides an educational adventure for youth from around the world by teaching various disciplines and business skills.
A university education isn’t only about getting a good job; at RIT Croatia it’s also about becoming a more interesting and cultured person – someone who thinks critically, communicates well, and understands themselves and others.
In addition to the deep knowledge that students learn in their chosen degree programs – International Business, Web and Mobile Computing, or Tourism and Hospitality Management – students at RIT Croatia can also broaden their knowledge by adding a second field of specialization called a “minor.”
The Association of the Exhibition and Event Industry was established at the Croatian Chamber of Commerce and our faculty, Dr Dina Tomšić was appointed as the Association President! More information is available HERE: https://www.zv.hr/press-3221/press-releases-3225/the-association-of-the-exhibition-and-event-industry-established-at-the-croatian-chamber-of-economy/8937