Worldwide R&D Incentives Reference Guide 2021

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EY Global

Jurisdictions still relying on R&D incentives for growth

As countries devised plans to reinvigorate their economies in the wake of COVID-19, many renewed, expanded or refocused research and development (R&D) incentive programs. These programs have long been popular with governments as they vie to attract and sustain economic activity in their jurisdiction. However, they also offer governments the opportunity to align growth with other policy goals, such as environmental sustainability, digital transformation or social equality.

The facts at your fingertips

The Worldwide R&D Incentives Reference Guide offers taxpayers the information necessary to identify and assist to leverage opportunities to benefit from available incentives, especially relevant if they are contemplating new or expanded investments in R&D, innovation and sustainability.

The content of our guide remains structured in a straightforward manner, consistent with prior years, and chapter by chapter we summarize the key incentives in 47 jurisdictions.

Each chapter begins with contact information for key EY R&D incentive professionals, before laying out a short overview of that country’s approach to incentivizing R&D, innovation and/or sustainability-related activity and providing a checklist showing which types of incentives are available. Where an incentive is most commonly referred to in local language, we have provided a translation.

In some instances, our professionals note which incentive some clients say is most beneficial to them; however, the applicability of the incentives depends on the taxpayers’ facts and circumstances.

For each incentive, we list the following information:

  • A description of the benefits delivered
  • Guidelines around incentive applications
  • Eligibility requirements
  • Intellectual property and jurisdictional requirements
  • Role of governmental bodies in administering the incentive
  • Administrative requirements
  • Any statutory references

The Worldwide R&D Incentives Reference Guide is published alongside three companion guides on broad-based taxes: the Worldwide Corporate Tax Guide; the Worldwide Personal Tax and Immigration Guide; and the Worldwide VAT, GST and Sales Tax Guide. In recent years, those three guides have been joined by additional tax guides on more specialized topics, including the Worldwide Estate and Inheritance Tax Guide, the Worldwide Transfer Pricing Reference Guide, the Global Oil and Gas Tax Guide, the Worldwide Digital Tax Guide and the Worldwide Capital and Fixed Assets Guide.