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 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.
Published on July 27, 2023
In series:OECD Taxation Working Papersview more titles