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Portugal is among the OECD countries with the greatest incentives for research and development

Portugal is among the countries of the Organisation for Economic Co-operation and Development (OECD) that provide the greatest tax incentives to companies that invest in research and development (R&D), according to a report published by the organisation this Thursday.

According to the OECD’s Corporate Tax Statistics study, “the cost of capital for R&D in 2023, taking into account expense-based tax incentives, was lowest in Portugal, Poland and France, where these jurisdictions offer companies greater tax incentives to increase their investments.”

The organisation further concluded that in 2021, “19 OECD jurisdictions provided more than 50% of public support for business R&D through the tax system, and this percentage reached 75% or more in seven OECD jurisdictions: Australia, Colombia, Ireland, Iceland, Japan, Lithuania and Portugal.”

According to the OECD, across all the jurisdictions considered, “Portugal, Poland and France are the jurisdictions that offer the greatest incentives through the tax system to increase R&D.”

Among the OECD’s global findings on the evolution of corporate taxation, the organization emphasizes that these revenues continue to “make an important contribution to jurisdictions’ economies, with moderate growth compared to the previous year,” pointing to a “stabilization” in the rates of these taxes.

“Some signs of stabilization in corporate tax rates can also be seen in the “greater stability” of tax subsidies provided for R&D investment,” he said.

“While R&D incentives can provide important financial support for R&D and innovation, they are also often seen” as a means of attracting investment that can change quickly and be subject to “strong competitive pressures.”

Author: Lusa
Source: CM Jornal

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