THE ROLE OF TAX INCENTIVES FROM INCOME TAXES IN BUILDING COMPETITIVENESS

This paper points out to most commonly used tax incentives with a main goal of building competitiveness. Above all it signifies tax incentives in income tax system, such as reduced income tax rate, holiday tax , accelerated amortization and different tax incentitives on the investment bases. The first part of this paper implies how tax incentitives should be put in function of industry policy, in order to make their impact more efficiant. Continuing on, papes offers the review of the most important tax incentives, with a special emphasis on their specifities, adventages and weaknesses. At the end it gives the total overview of tax icentives in the republic of Serbia, with the accent on adjusting to policy of government incentives i.e. the E.U. regulations.

Key words: tax incentives, income tax, holiday tax, tax reliefs, tax amortization

JEL Classification: H32