Design features of income-based tax incentives for R&D and innovation
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, have become widespread in recent years. This paper describes the key design
features of tax incentives available in 49 member countries of the Inclusive Framework
on BEPS (IF), covering all OECD countries and EU countries. It outlines differences
in the design of such incentives that may translate into differences in the tax benefits
offered. The information collected and reported in this paper is a first step towards
a more systematic comparison of tax support policies for R&D and Innovation.