Fiscal Policy Led by Tax Incentives: Croatian Experiences

Jasna  Bogovac; Sabina  Hodžić

Jasna Bogovac
Sabina Hodžić

Keywords: multinational enterprises, foreign direct investment, tax incentives

Abstract

Multinational enterprises play an important role in the field of foreign direct inve- stment activity. However, investments that are desirable from the standpoint of the host country might be rejected by the strategic management of multinational enter- prises due to other, more important aspects of the tax system, such as tax risks. This paper examines how important tax incentives are for Croatian multinational enter- prises as a fiscal instrument for attracting foreign direct investment. We found that tax incentives play an important role during the strategic decision-making process of multinational enterprises, in which the decisive factors are unpredictable tax risks and costs

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Author Biographies

Jasna Bogovac

University of Zagreb, Faculty of Law, Croatia
E-mail: jbogovac@pravo.hr

Jasna Bogovac, Ph.D., works at the Chair of the Financial Law and Financial Science of the Faculty of Law in Zagreb. She earned her degree in economics, master’s degree (dividend taxation), and doctorate degree (MNE taxation) at the University of Zagreb. With her experience in taxation issues of multinational corporations, both domestic and international, she has acquired knowledge of the tax aspects of the dynamic business environment and has participated in various government projects related to taxation. She is the author of several scientific and expert articles and has participated in Croatian and international con- ferences as well as scientific and expert projects (financial law, public finance, corporate taxation).

Sabina Hodžić

University of Rijeka, Faculty of Tourism and Hospitality Management, Croatia
E-mail: sabinah@fthm.hr

Sabina Hodžić was born in Rijeka, Republic of Croatia. She earned her master’s degree in economics in 2007 at the Faculty of Tourism and Hospitality Manage- ment in Rijeka. She is currently an assistant at the Faculty of Tourism and Hospitality Management in Rijeka, where she is also earning her doctorate degree. Her main field of research, and the topic of her doctorate dissertation, is public financing and tax incentives for research and development. She has been acquiring knowledge in this field by attending different professional seminars, workshops, and conferences as well as through professional practice. She is the author of several works published in local and foreign scientific journals and has presented at international conferences.

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