According to the latest figures published by the Organisation for Economic Co-operation and Development (OECD) on Tuesday 22 April, almost 55% of the total support for business research and development (R&D) in the OECD area takes the form of tax incentives.
In 2024, 34 of the 38 OECD countries granted tax relief for R&D expenditure, including Estonia for the first time. Costa Rica, Israel, Latvia and Luxembourg were the only four OECD countries without such tax incentives.
Tax subsidy rates vary based on the size and profitability of the business, whether it is a small or medium-sized enterprise (SME) or a large company, and whether it is profitable or operating at a loss. +They take into consideration the differences between countries in terms of whether they grant preferential treatment to SMEs, such as higher tax credits or relief, and how countries address situations where the amount of tax due is insufficient, for instance through refunds or deferrals for loss-making companies.
In several countries, SMEs benefit from more favourable tax treatment for their R&D expenditure. In 2024, Portugal, France and Poland were the OECD economies offering the most generous R&D tax incentives for large corporations, while Iceland, Portugal and France were the most generous in terms of those granted to SMEs.
You can find further information here: https://aeur.eu/f/gi3 (Original version in French by Anne Damiani)