Tax incentives as a factor of economic growth ivana domazet and darko marjanović

4. Research Results 
The results of empirical research on the importance of tax incentives in certain 
areas of business of foreign investors were presented in figure, descriptive statistics 
and analysis of differences between foreign investors depending on their specific 
characteristics in evaluating the significance of tax incentives in certain areas. 
In order to determine tax competitiveness of Serbia the focus of this research 
was to determine the importance of tax incentives in certain areas of business of 
foreign investors in Serbia. For this reason, special attention is paid to tax incentives 
for investment in underdeveloped regions, tax incentives for investment in certain 
branches of industry, tax incentives for companies that export, tax incentives for 
doing business in free zones, tax incentives for hiring new workers, tax incentives for 
the establishment of small and medium-sized enterprises, tax incentives for corporate 
income tax and tax reliefs for the personal income tax. 

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The State and the Market in Economic Development: In Pursuit of Millennium Development Goals 
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Figure 1: The importance of tax incentives in business activities of foreign investors in Serbia 
 
The largest number of foreign investors (35.2%) stated that tax incentives for 
corporate tax make the greatest impact on their decision to choose Serbia as an 
investment destination. According to ranking, i.e. to the impact they have on the 
business of investors, that incentive is followed by tax incentives for hiring new 
workers (26.1%), tax incentives for companies that export (21.6%), tax incentives for 
investment in under-developed regions (18.2%), tax incentives for investment in 
certain industries (11.4%), tax incentives for the establishment of small and medium-
sized enterprises (9.1%), tax incentives for the personal income tax (6.8%) and tax 
incentives for doing business in free zones (6.8%). 
Using descriptive statistics (Table 2) it is presented how foreign investors 
assessed the impact of tax incentives in certain areas on their business. 
15,9
20,5
20,5
38,6
15,9
47,7
9,1
31,8
13,6
15,9
23,9
13,6
15,9
4,5
4,5
15,9
34,1
34,1
18,2
21,6
13,6
22,7
30,7
29,5
18,2
18,2
15,9
19,3
28,4
15,9
20,5
15,9
18,2
11,4
21,6
6,8
26,1
9,1
35,2
6,8