Comparison of International Tax Incentives for R&D
Tax incentives for the research and development (R&D) activities of small and medium-sized enterprises (SMEs) are not exclusive to Germany. In a comparative article, experts from the RSM network provide an overview of tax incentives for R&D in various countries.
After a slow start, an increasing number of German companies are benefiting from the research allowance. Tax incentives for research have thus evolved into a successful concept in Germany, particularly for SMEs. However, other countries have also created tax incentives to encourage SMEs to invest in R&D.
For example, since 1983, France has offered the "Crédit d'Impôt Recherche" (CIR), which subsidises R&D expenditure with a tax credit of up to 30%. The United Kingdom, on the other hand, provides companies with an "above-the-line" credit on eligible R&D expenditure. Outside Europe, companies in Australia can benefit from a refundable tax offset on their R&D expenditure if they generate an aggregated turnover of less than AUD 20 million.
To learn exactly how tax incentives for research are structured in various countries and which additional countries offer programmes to promote R&D, you can read an article by RSM Global. In it, our Incentives experts from the RSM network compare international systems for promoting R&D among SMEs and provide an outlook on future developments in the area of tax incentives for research.
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