Everyone is familiar in France with the Young Innovative Company status or the Research Tax Credit, but who knows the Israeli Chief Scientist whose financing rate may reach 50% of the costs? Who knows that Turkey has launched a fabulous program aimed at reducing technology imports to half by 2023 to mark the centenary of Modern Turkey which focuses on a mechanism close to the RTC, less selective and more powerful as it is open to any web activity, to tax-free technology parks, exempt from social security tax that make it, together with France and Israel, one of the most attractive countries in the world for setting up web companies or R&D centers? Turkish universities are renowned, 2 of them being included in the Shanghai Top 100 ranking.
Who knows that Romania, a member of the European Union, is about to launch a 100 million euro program to cover 40 to 50% of the payroll of state-recognized projects? The cost for a newcomer is high because, in order to take advantage of this framework, you have to guarantee that you will use the respective platforms for 7 years, employing 200 people (!) while you will only receive financial support for 2 years. This system is especially intended for large-scale technology companies. Those who don’t have long-term plans should refrain from making any such investments. For the other companies, it is a great opportunity, all the more so that the Romanian status, being European, is not incompatible with that of the French RTC and YIC. Isn’t it nice? By combining the 2 statutes with the nearshore rates, the overall cost might drop below 30% of the gross nominal costs in France.
However, our valuable RTC is more and more lonely and I expect to see in coming years a growing number of initiatives in this regard, in the emerging countries as well. Perhaps primarily in the successful emerging countries whose budget management and best performing trade balances allow for very aggressive tax incentives. We shall be monitoring this very closely to ensure the best opportunities for our clients.
*I refer to the free-trade technical zones that exist in many countries such as: Vietnam, Morocco, Tunisia etc.