A time series perspective on income-based tax support for R&D and innovation

The use of tax incentives that provide preferential tax treatment to the incomes arising from research and development (R&D) and innovation activities, such as intellectual property regimes, has accelerated over the last two decades. The globalisation of R&D together with the greater mobilit...

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Bibliographic Details
Published inOECD taxation working papers
Main Authors Ana Cinta González Cabral, Appelt, Silvia, Hanappi, Tibor, Galindo-Rueda, Fernando, Pierce O’Reilly, Bucci, Massimo
Format Journal Article
LanguageEnglish
Published Paris Organisation for Economic Cooperation and Development (OECD) 27.07.2023
Subjects
Fiscal policy
Intangible assets
Intellectual property
R&D
Research & development
Subsidies
Tax incentives
Tax rates
Taxation
Time series
Trends
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Summary:The use of tax incentives that provide preferential tax treatment to the incomes arising from research and development (R&D) and innovation activities, such as intellectual property regimes, has accelerated over the last two decades. The globalisation of R&D together with the greater mobility of intangible income may have contributed to the rise in such incentives to attract and retain R&D and innovation activity while preventing the transfer of taxable base to other countries. This paper documents the changes to the availability and design of income-based tax incentives from 2000 onwards for 48 countries, including all OECD countries and EU countries. Building on this, the paper analyses trends in the generosity of income-based tax support over time by building indicators of effective tax rates that can provide insights into the impact of Action 5 of the OECD/G20 Base Erosion and Profit Shifting project.
ISSN:2223-5558
DOI:10.1787/dae3cd5c-en