Income-based tax incentives for R&D and innovation (IBTIs), sometimes referred to as patent boxes, innovation boxes, or intellectual property (IP) regimes, reduce the tax burden on the income that firms generate from their innovation activities. They have become part of many governments’ tax supports policy toolbox, with more than half of OECD countries offering IBTIs in 2023. This blog highlights five need-to knows about these incentives, the key categories of IBTIs, and their use, design, generosity and cost to governments and draws on the latest OECD evidence in this area.
LOADING...