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.
RIT Croatia began a collaborative partnership with the Red Hat Academy (https://www.redhat.com/en/services/training/red-hat-academy), an open-source, web-deployed and web-managed education program designed to provide academic institutions, faculty, and students with courseware, training and learning materials, and other resources, related mostly to cloud computing, enterprise software development technologies, and Linux operating system.
Dr. Patekar’s life started out interesting from the very first moment; he was born in New Delhi, India, an exotic place of birth that often surprises his fellow Croatians. Coincidentally, his last name, which comes from the north of Croatia, is also a popular Indian last name (you might want to google Nana Patekar, for example).
Dr. Domagoj Tolić, who is currently teaching WMC/IT courses at RIT Croatia, was granted an ERASMUS+ KA107 project aimed at modeling and analysis of three-dimensional movements of fluid flows, in collaboration with Clarkson University, Potsdam, NY, USA.
Luxury experiences is one of the hottest segments of the tourism industry today, and experts predict that the luxury tourism shows the greatest potential for growth of any segment in the travel industry. RIT Croatia recognized this opportunity by enabling students to prepare themselves for careers in this niche specialty by choosing our program concentration called Designing Luxury Experiences.