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How can Linders Consultants use the innovationbox to their full potential : a study of the possibilities and applications of the servicebox at Linders Consultants

Oude Lansink, M.W.B. (2010) How can Linders Consultants use the innovationbox to their full potential : a study of the possibilities and applications of the servicebox at Linders Consultants.

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Abstract:January 2010 the government introduced a new fiscal measure. This measure is called the innovationbox. With this measure the government tries to stimulate organizations in the Netherlands to remain innovative, and keep their research and development activities within the Netherlands. This is done by offering organizations a lower effective tax rate on profits made on innovative activities. For profits created by innovative activities the tax rate is 5% instead of the usual 20% to 25%Linders Consultants in Utrecht has been providing over 300 organizations with research and development subsidies for years and saw the opportunity to increase expand their service area by also looking into this fiscal measure. This research was done to look into the possibilities for Linders Consultants for providing this service. The first part of this research looks into the current database of Linders Consultants to find out in what market segment the most customers currently reside. This part of the research also explains what the requirements are to apply for the innovationbox. Once these requirements are known a segmentation is created in which the most relevant segments are indicated for Linders Consultants to offer the service of applying for the innovationbox. The current customer database is then placed over the advised segments to determine what current customers would be most interested in using this service. The innovationbox, as stated before, is created to stimulate innovative organizations in the Netherlands. By offering such a good tax rate on profits, organizations are stimulated to stay here or even move their research and development activities from other countries to the Netherlands. In order to give good advice to larger organizations, this part of the research looks into country selection. First of all, one important determinants for country selection is the fiscal climate. Therefore the first part of this segment looks into country selection based on tax criteria. But since this is never the only determinant for an organization to decide to move an entire department, the second part of this segment focuses on other determinants. In this part a MCDA is suggested to determine the most interesting country for an organization to establish their business. In the third and final part of this research the application of the innovationbox is explained. The innovationbox procedure as it is created by taxing authorities uses two transfer pricing methods to assign profits to innovative activities. by assigning as much profit as possible to the innovationbox, this can all be taxed with the lower effective tax rate of 5%. The taxing authorities have also indicated that it is allowed to differ from the prescribed two transfer pricing methods. In this chapter a third method is determined and explained. This method is especially suitable for organizations that have been determined in the first part of this research. This research has resulted in a clear picture of the possibilities for the service innovationbox at Linders Consultants. The advised segment are currently being provided with this service. Also the other transfer pricing method to assign profits to innovative activities has already been used in an application and been approved by the taxing authorities.
Item Type:Essay (Master)
Clients:
Linder Consultants, Utrecht
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/63003
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